“Value Creation” Royalties
- Business Model Pioneered by Franco-Nevada
- Interests in Gold, Platinum, Oil and Gas
- Mainly “Net Smelter Return” Royalties
Property Operator Royalty
Betze– Post & Meikle Barrick Gold NSR (2-4%), NPI (5-6%)
Stillwater Stillwater Mine NSR (5%)
Edson, Alberta Rio Alto ORR (15%)
- Significant Cash Flow Generator
- 2002 estimate ~ US$35 million in third-party receipts (10.5 months)
- Stable revenue/cash flow stream
- Natural hedge