August 9, 2011 / 10:04 PM / 7 years ago

UPDATE 1-Franco-Nevada Q2 profit rises on higher metal prices

* Q2 EPS $0.27 vs $0.20 year ago

* Revenue doubles to $106.3 mln (Follows alerts)

Aug 9 (Reuters) - Canadian gold-focused royalty company Franco-Nevada Corp’s quarterly profit rose 49 percent, helped by higher precious metal prices.

The company, which completed the buyout of Gold Wheaton earlier this year, posted April-June profit of $33.3 million, or 27 cents per basic share, compared with $22.3 million, or 20 cents per basic share, a year ago.

Total revenue more than doubled to $106.3 million. The company forecast revenue for 2011 to be between $375-$400 million.

Ninety percent of Franco Nevada’s revenues come from precious metals and the company said it expects the contribution from precious metals to rise further if current commodity prices continue.

Spot gold prices averaged about $1507.8 an ounce during April-June, up 26 percent since last year as looming debt problems in major economies boosted the interest in precious metal as a haven from risk. Silver prices , meanwhile, more than doubled to average about $38 an ounce, outpacing the gains in the yellow metal.

Shares of the company closed at C$40.42 on Tuesday on the Toronto Stock Exchange. (Reporting by Maneesha Tiwari in Bangalore; Editing by Maju Samuel)

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