Q: Do you credit the notion that buying shares in FNV includes a "free option" given the potential reopening of the Cobre Panama mine sometime in the future perhaps under a different government? Considering that for FNV, Cobre Panama was its largest royalty asset at about US$2-billion in net asset value and 22 per cent of revenue, do you believe that patient investors are offered a compelling risk/reward scenario?
Thanks as always for your expertise.
Thanks as always for your expertise.
5i Research Answer:
Yes; Panama has essentially been written off by investors. Any positive developments would help the stock. We would not 'expect' this but it would certainly be a nice bonus to the shares if some future agreement could be reached.