BMO's take on Franco-Nevada and its tie to Taseko re recent mine permit turndown:

"The Federal Minister of Environment has announced that Taseko MinesLimited (TKO-TSX; OP; Target $7; covered by David Cotterell) has notbeen granted federal authorizations to proceed "as proposed" with theProsperity copper-gold project in British Columbia. Franco-Nevada has an agreement to acquire gold equal to 22% of the gold produced at theProsperity from Taseko. Under the agreement, Franco-Nevada would provide a US$350 million deposit for the construction of Prosperity,advanced pro rata with other financing for the project once the project isfully permitted and financed and will grant Taseko two million of its 2017warrants with the first installment. In addition, Franco-Nevada would pay Taseko the lower of US$400/oz (subject to an adjustment for inflation) orthe prevailing market price for each ounce of gold delivered. TheProsperity gold stream represents US$77M (~4%) of Franco-Nevada’s project NPV at 5% and US$563M (~19%) at a 0% discount rate, usingBMO Research assumptions. Taseko has stated that it will evaluate itsoptions for moving the project forward once it has had further discussionswith the federal and provincial governments. Franco-Nevada responded that it is disappointed with the decision and will continue to be supportiveof Taseko’s efforts to move the project ahead. Franco-Nevada’s financing commitment remains available to Taseko once the project is fullypermitted and financed."