TORONTO (miningweekly.com) – Resources royalty company Franco-Nevada reported second-quarter net income of $25,1-million on Tuesday, an increase of 154% compared with the same period a year earlier.

Profit included a $12-million fair value gain on an asset and a $18-million foreign-exchange gain, Franco Nevada said.

Revenue from royalties rose declined, to $32,9-million, compared with $40,9-million in the second quarter of 2008.

However, the company reported a best-ever gold royalty revenue of $23,6-million, bringing the overall contribution from precious metals to 80% of total royalty revenue.

In 2008, precious metals brought in 56% of group revenue, with gold making up 47% of the total and platinum-group metals just 9%.

Total revenue rose 10%, to $45,07-million, after  changes in fair value of derivative assets.

Although prices for oil, gas, platinum and palladium were lower in the second quarter of 2009, the declines were partly offset by higher gold prices.

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.