Franco-Nevada Acquires Royalty for Bullabulling Gold Project
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
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Should l Buy FNV?
Source: Newsfilter
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a gross royalty of A$170 million (approximately $120 million) from Minerals 260, increasing its stake in the Bullabulling Gold Project from 1.00% to 2.45%, reflecting strong confidence in the project's potential.
- Financial Backing: In addition to the royalty, Franco-Nevada will subscribe for A$50 million (approximately $35 million) of Minerals 260's ordinary shares, which is expected to accelerate the development of Bullabulling and facilitate first gold production as early as H2 2028.
- Resource Potential: The Bullabulling project boasts existing resources of 3.0 million ounces of indicated resources and 1.5 million ounces of inferred resources, with recent drilling nearly doubling the mineral resources, indicating significant growth potential that will drive project development.
- Experienced Management Team: Led by Tim Goyder, who has over 40 years of experience in the resource sector, the Minerals 260 management team, combined with Franco-Nevada's financial support, is expected to effectively mitigate development risks and expedite project progress.
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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: 254.960
Low
210.00
Averages
236.43
High
270.00
Current: 254.960
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 Acquires Royalty for Bullabulling Gold Project
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a gross royalty of A$170 million (approximately $120 million) from Minerals 260, increasing its stake in the Bullabulling Gold Project from 1.00% to 2.45%, reflecting strong confidence in the project's potential.
- Financial Backing: In addition to the royalty, Franco-Nevada will subscribe for A$50 million (approximately $35 million) of Minerals 260's ordinary shares, which is expected to accelerate the development of Bullabulling and facilitate first gold production as early as H2 2028.
- Resource Potential: The Bullabulling project boasts existing resources of 3.0 million ounces of indicated resources and 1.5 million ounces of inferred resources, with recent drilling nearly doubling the mineral resources, indicating significant growth potential that will drive project development.
- Experienced Management Team: Led by Tim Goyder, who has over 40 years of experience in the resource sector, the Minerals 260 management team, combined with Franco-Nevada's financial support, is expected to effectively mitigate development risks and expedite project progress.
See More
Franco-Nevada Acquires Bullabulling Gold Royalty for $120 Million
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a gross royalty from Minerals 260 for A$170 million (approximately $120 million), effectively increasing its total royalty interest in the Bullabulling Gold Project from 1.00% to 2.45%, significantly enhancing its market position in Australia.
- Equity Investment: The company has also agreed to subscribe for A$50 million (approximately $35 million) of Minerals 260's ordinary shares, demonstrating confidence in the team's ability to develop the Bullabulling project and create long-term value for shareholders.
- Funding Support: The A$220 million funding package secured by Minerals 260 from Franco-Nevada will accelerate the development of the Bullabulling project while substantially de-risking the funding pathway, thereby enhancing the project's production potential and market appeal.
- Strategic Importance: This acquisition marks Franco-Nevada's largest royalty acquisition in Australia, further solidifying its position as a leading gold-focused royalty and streaming company globally, while providing robust support for future expansion and investment opportunities.
See More
FRANCO-NEVADA CORP: JEFFERIES INCREASES TARGET PRICE FROM $226 TO $268
Company Announcement: Franco-Nevada Corp has raised its target price for shares of Jefferies to $268.
Previous Target Price: The previous target price for Jefferies was set at $226.
See More
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 Royalty for Bullabulling Gold Project
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a gross royalty of A$170 million (approximately $120 million) from Minerals 260, increasing its stake in the Bullabulling Gold Project from 1.00% to 2.45%, reflecting strong confidence in the project's potential.
- Financial Backing: In addition to the royalty, Franco-Nevada will subscribe for A$50 million (approximately $35 million) of Minerals 260's ordinary shares, which is expected to accelerate the development of Bullabulling and facilitate first gold production as early as H2 2028.
- Resource Potential: The Bullabulling project boasts existing resources of 3.0 million ounces of indicated resources and 1.5 million ounces of inferred resources, with recent drilling nearly doubling the mineral resources, indicating significant growth potential that will drive project development.
- Experienced Management Team: Led by Tim Goyder, who has over 40 years of experience in the resource sector, the Minerals 260 management team, combined with Franco-Nevada's financial support, is expected to effectively mitigate development risks and expedite project progress.
See More
Franco-Nevada Acquires Bullabulling Gold Royalty for $120 Million
- Royalty Acquisition: Franco-Nevada has entered into an agreement to acquire a gross royalty from Minerals 260 for A$170 million (approximately $120 million), effectively increasing its total royalty interest in the Bullabulling Gold Project from 1.00% to 2.45%, significantly enhancing its market position in Australia.
- Equity Investment: The company has also agreed to subscribe for A$50 million (approximately $35 million) of Minerals 260's ordinary shares, demonstrating confidence in the team's ability to develop the Bullabulling project and create long-term value for shareholders.
- Funding Support: The A$220 million funding package secured by Minerals 260 from Franco-Nevada will accelerate the development of the Bullabulling project while substantially de-risking the funding pathway, thereby enhancing the project's production potential and market appeal.
- Strategic Importance: This acquisition marks Franco-Nevada's largest royalty acquisition in Australia, further solidifying its position as a leading gold-focused royalty and streaming company globally, while providing robust support for future expansion and investment opportunities.
See More
FRANCO-NEVADA CORP: JEFFERIES INCREASES TARGET PRICE FROM $226 TO $268
Company Announcement: Franco-Nevada Corp has raised its target price for shares of Jefferies to $268.
Previous Target Price: The previous target price for Jefferies was set at $226.
See More
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
