Franco-Nevada Seeks $250 Million in Acquisitions,Franco-Nevada Seeks $250 Million in Acquisitions, Harquail Says
By Claudia Carpenter
April 9 (Bloomberg) -- Franco-Nevada Corp., the mining andenergy royalty company that went public in December, is seekingabout $250 million in acquisitions as metals prices advance.
Franco-Nevada is in talks on ``several gold deals,'' ChiefExecutive Officer David Harquail said today in an interview inZurich. ``We've never seen as many opportunities as we're seeingright now.''
Franco-Nevada, based in Toronto, raised $1.2 billion inDecember and used the cash to buy Newmont Mining Corp.'s energyand mining royalties, Harquail said. The company gets revenuefrom about 285 investments producing gold, oil, gas, copper,nickel, platinum and palladium, according to a document Harquailpresented today at the European Gold Forum in Zurich.
Companies such as London-based Rio Tinto Group and AngloGoldAshanti Ltd. are seeking to reduce their holdings of``miscellaneous stuff,'' he said. AngloGold, based inJohannesburg, put its 40 percent stake in the Morila mine in Maliup for sale in February.
Franco-Nevada can also make acquisitions because some U.S.miners want to be bought in case the presidential election inNovember results in changes to mining laws and increases intaxes, Harquail said.
Separately, Franco-Nevada Chairman Pierre Lassonde, theformer president of Newmont, agreed to fill in as chairman of theWorld Gold Council, replacing Barrick Gold Corp. Chief ExecutiveOfficer Greg Wilkins, Harquail said. Wilkins took a leave ofabsence from Barrick because of illness, the company said March27. The World Gold Council is a London-based producers' body thatpromotes the use of the precious metal.
Gold rose to a record $1,032.70 an ounce on March 17, whileplatinum reached an all-time high of $2,301.50 an ounce on March4. The London Metal Exchange Index of six industrial metalsincluding copper advanced 22 percent this year.
To contact the reporter on this story:Claudia Carpenter in Zurich atccarpenter2@bloomberg.net
Last Updated: April 9, 2008 05:22 EDT