Despite some market-oriented setbacks, the financial health of Toronto-based Franco-Nevada Mining (TSE) improved markedly during the second quarter of 1988.
Franco-Nevada, which holds a royalty interest in American Barrick Resources’ (TSE) huge Goldstrike mine in Nevada recently shelved a plan to sell the company in exchange for shares of a larger metal producer.
After the company’s share price fell to around $7 on the Toronto Stock Exchange, it was also unable to buy 1.8 million of its own shares at $9 per share from Corona Corp. (TSE).
However, Franco-Nevada increased its net income to $367,000 during the three months ended Sept 30 from $74,000 at the same time last year. First half net income also increased to $422,000 from $128,000 during the first six months of 1987.
Higher gold production at Goldstrike was reflected in the revenues reported recently by Franco- Nevada. During the second quarter, revenues more than doubled to $580,000 from $285,000 last year.
First half revenues were also up substantially to $944,000 from $450,000 in 1987. With almost $5 million in cash on Sept 30, the company is currently debt free.
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