Franco-Nevada Reports Initial Financial Results and Year End Oil and Gas Reserves


    This press release contains forward-looking statements. Reference should
    be made to "Forward-looking Statements" at the end of this press release.

    TORONTO, March 28 /CNW/ - Franco-Nevada Corporation (TSX: FNV) today
reported its initial financial results for the period starting from its
incorporation on October 17, 2007 and ending December 31, 2007. All figures
are in U.S. dollars unless otherwise noted.
    On December 20, 2007, Franco-Nevada completed its initial public offering
("IPO") and listing on the Toronto Stock Exchange, entered into an acquisition
credit facility with a syndicate of lenders and purchased the Royalty
Portfolio assets from Newmont Mining Corporation for $1.21 billion. On
December 31, 2007 Franco-Nevada used a portion of the proceeds from the
exercise of the IPO over-allotment option to repay the credit facility. The
financial results for the partial period in 2007 represent only eleven days of
revenue from the assets and the one time costs related to the IPO and
acquisition of the assets. As Franco-Nevada was only established during the
period, there are no year-over-year comparable figures.

    Selected Financial Information for the period ended and as at
    December 31, 2007:
    (thousands of U.S. dollars except per share amounts)

    Statement of Operations
      Total revenue                       $     3,281
      Depletion                                 2,388
      Net loss                                (33,079)
      Basic and diluted loss per share         $(0.38)
    Balance Sheet
      Cash                                $    12,894
      Total assets                          1,366,656
      Total shareholders' equity            1,287,054

    The net loss included $32.6 million in non-recurring, non-cash charges
related to the IPO and the acquisition of the Royalty Portfolio assets.
Franco-Nevada's complete 2007 Financial Statements and Management Discussion
and Analysis along with the 2007 Annual Report and the Annual Information Form
dated March 28, 2008 can be found on and on the Company's web
site at
    Franco-Nevada today also filed its Reserves Assessment and Evaluation of
Canadian Oil and Gas Properties dated March 26, 2008. This assessment and
evaluation was prepared by GLJ Petroleum Consultants on all of Franco-Nevada's
producing oil and gas properties and has an effective date of December 31,
2007. Proved reserves are 5.7 million barrels of oil equivalent, net after
royalty. The full assessment and evaluation can be found on and
on the Company's web site at
    On March 13, 2008, Franco-Nevada closed a unit offering with a syndicate
of underwriters raising net proceeds of C$256.3 million. Each unit consisted
of a common share plus a half share purchase warrant. On March 28, 2008,
Franco-Nevada has 100.3 million common shares and 5.75 million warrants
outstanding. The $150 million credit facility also remains fully available to
the company.
    Interim financial statements for the period ended March 31, 2008 are
expected to be released on May 12, 2008. Franco-Nevada will host its Annual
General Meeting on May 13, 2008 and its annual Analyst Day on May 15, 2008.
Details of these meetings are available on the Company's web site.
    Franco-Nevada Corporation and its subsidiaries are currently Passive
Foreign Investment Companies("PFIC") for United States income tax purposes. An
annual PFIC information statement will be posted on the Company's website in
early April.

    Franco-Nevada Corporation (TSX: FNV) is a resource royalty and investment
company. The Company owns a diversified portfolio of precious and base metal
royalties, oil and gas royalties and other interests. The portfolio includes
assets in production, under development or in the exploration phase mostly
located in geopolitically secure countries. Franco-Nevada intends to use its
free-cash flow to further expand its portfolio in the resource sector and to
pay dividends.

    This press release contains forward-looking information, including
"forward-looking statements" within the meaning of applicable Canadian and
United States securities laws. Such forward-looking statements include,
without limitation, statements regarding the timing, terms and conditions and
anticipated consequences of the possible transactions. Where statements by
Franco-Nevada expressor imply an expectation or belief as to future events or
results, such expectation or belief is expressed in good faith and believed to
have a reasonable basis. However, forward-looking statements are subject to
risks, uncertainties and other factors (including without limitation risk
factors identified in Franco-Nevada's filings available at,
which could cause actual results to differ materially from future results
expressed, projected or implied by such forward-looking statements.
Franco-Nevada expressly disclaims any obligation to release publicly revisions
to any forward-looking statement to reflect events or circumstances after the
date of this news release, or to reflect the occurrence of unanticipated
events, except as may be required under applicable securities laws.

For further information:

For further information:, Alex
Morrison, Chief Operating Officer, (416) 480-6480; H. Geoff Waterman, Chief
Financial Officer, (416) 480-6480

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