Franco-Nevada awaits increased production

Production at Franco-Nevada Mining’s Goldstrike royalty lands in the heart of the Carlin gold trend was disrupted for much of this year as operator American Barrick Resources focused on construction of milling and leach pad facilities.

But with Barrick spending $200 million(US) on more Goldstrike development, Franco-Nevada says it expects gold production there to increase from 52,000 oz this year to 500,000 oz by 1991.

Since Franco-Nevada holds a 4% royalty and 5% net profit interest in Goldstrike that’s good news for the Toronto-listed company which reported a net income loss of $128,000(C) for the six months ended Sept 30, on revenues of $450,000.

That compares with a net income loss of $23,000 on revenues of $225,000 during the same period in 1986.

Franco-Nevada said net income for the six months ended Sept 30 was $132,000, up slightly from the same period last year. The company’s cash position on Sept 30 was $3,389,000, up considerably from $610,000 on Sept 30, 1986.

Franco-Nevada shares traded recently on the Toronto Stock Exchange at $7.75 in a 52-week range of $16.75 and $2.60.