Q: What do you think of the following news about FNV? Thank you
Cobre Panama Supreme Court Update
TORONTO, Nov. 28, 2023 /CNW/ - Franco-Nevada Corporation ("Franco-Nevada") (TSX: FNV) (NYSE: FNV) is aware that the Supreme Court of Panama announced this morning that Law 406, the law that approved the revised concession contract for the Cobre Panama mine, is unconstitutional. Franco-Nevada is in communication with its partner First Quantum Minerals Ltd. and will provide further updates as they are available.
Cobre Panama Supreme Court Update
TORONTO, Nov. 28, 2023 /CNW/ - Franco-Nevada Corporation ("Franco-Nevada") (TSX: FNV) (NYSE: FNV) is aware that the Supreme Court of Panama announced this morning that Law 406, the law that approved the revised concession contract for the Cobre Panama mine, is unconstitutional. Franco-Nevada is in communication with its partner First Quantum Minerals Ltd. and will provide further updates as they are available.
5i Research Answer:
The ruling raises the prospects of a long and extensive legal battle between Panama and FM. The issue could move to arbitration. In 2017 a previously contract was deemed unconstitutional, but the mine was allowed to stay open. This time, with massive public protests, it may not be able to. FNV has a royalty on the mine, which accounts for about 22% of revenue. Copper has risen sharply today, and this has taken pressure off FNV shares on this news.