BMO Revises Outlook on Franco- Nevada Based on Cascabel I have translated to English from a foreign language Press Release as follows:
BMO Capital Markets has revised its outlook on Franco-Nevada shares, raising its price target to C$210.00 from C$205.00 and restating its Outperform rating on the stock. The revisions follow Franco-Nevada's recent acquisition of the gold deposits at SolGold's Cascabel copper-gold project in Ecuador.
The deal is valued at US$525 million and is expected to generate significant profits for Franco-Nevada. According to BMO Capital Markets, the acquisition provides Franco-Nevada with an attractive cash allocation option, increasing the company's growth potential and increasing its future exposure to gold and precious metals. The internal rate of return (IRR) for the investment, including staged payments, is estimated at 6% and may rise further.
Franco-Nevada's strategic move to acquire gold deposits from SolGold's project in Ecuador is a notable development for the company.