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Franco-Nevada (FNV) Expands Nevada Royalty Portfolio with $250M Arthur Gold Deal

Franco-Nevada Corporation (NYSE:FNV) is one of the best stocks to buy amid gold rally. On July 23, Franco-Nevada Corporation, through its wholly-owned subsidiary, acquired a 1.0% net smelter return (NSR) royalty on AngloGold Ashanti’s Arthur Gold Project, formerly the Expanded Silicon Project. The royalty was purchased from Altius Minerals Corporation for $250 million in cash, with an additional $25 million payable pending arbitration outcomes.

A close-up shot of a corporate executive evaluating a financial instrument.

Franco-Nevada’s new royalty covers a major part of the Merlin and Silicon gold deposits in Nevada and comes with no reductions or buyout options. The Arthur Gold Project has grown significantly, with gold resources rising 20% in a year—now totaling 3.4 million ounces of indicated and 12.9 million ounces of inferred resources. As of the end of 2024, 430 kilometers of drilling had been completed, including 132 kilometers just that year.

AngloGold, a top-tier mining company, plans to finish an early study by late 2025 or early 2026 for a large gold operation. Franco-Nevada paid using cash on hand and borrowed $175 million from its $1 billion credit line. The deal qualifies for tax benefits. If a legal decision supports Altius’ wider royalty claims, Franco-Nevada will pay an extra $25 million. Altius still holds a smaller 0.5% royalty and Franco-Nevada has the right to buy it first if it’s sold.

Franco-Nevada Corporation (NYSE:FNV) is a gold-focused royalty and streaming company. It manages a diversified portfolio of cash-flow producing assets across precious metals, energy, and other commodities. The company’s core business involves acquiring royalties and metal streams from mining operations, providing investors with exposure to gold prices and exploration upside while avoiding direct operational risks.

While we acknowledge the potential of FNV to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than FNV and that has 100x upside potential, check out our report about this cheapest AI stock.

READ NEXT: Top 10 Materials Stocks to Buy According to Analysts and 10 Best Organic Food and Farming Stocks to Buy Now.

Disclosure: None. This article is originally published at Insider Monkey.

The $250 Trillion AI Hype is Real. A few years from now, you’ll probably wish you’d bought this stock.

Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

When Jeff Bezos said that one breakthrough technology would shape Amazon’s destiny, even Wall Street’s biggest analysts were caught off guard.

Fast forward a year and Amazon’s new CEO Andy Jassy described generative AI as a “once-in-a-lifetime” technology that is already being used across Amazon to reinvent customer experiences.

At the 8th Future Investment Initiative conference, Elon Musk predicted that by 2040 there would be at least 10 billion humanoid robots, with each priced between $20,000 and $25,000.

Do the math. According to Musk, this technology could be worth $250 trillion by 2040.

Put another way, that’s roughly equal to:

  • 175 Teslas
  • 107 Amazons
  • 140 Metas
  • 84 Googles
  • 65 Microsofts
  • And 55 Nvidias

And here’s the wild part — this $250 trillion wave isn’t tied to one company, but to an entire ecosystem of AI innovators set to reshape the global economy.

It’s a leap so massive, it could reshape how businesses, governments, and consumers operate worldwide.

Even if that $250 trillion figure sounds ambitious, major firms like PwC and McKinsey still see AI unlocking multi-trillion-dollar potential.

How could anything be worth that much?

The answer lies in a breakthrough so powerful it’s redefining how humanity works, learns, and creates.

And this breakthrough has already set off a frenzy among hedge funds and Wall Street’s top investors.

What most investors don’t realize is that one under-owned company holds the key to this $250 trillion revolution.

In fact, Verge argues this company’s supercheap AI technology should concern rivals.

Before I reveal the details, let’s talk about how some of the richest people on the planet are positioning themselves.

  • Bill Gates sees artificial intelligence as the “biggest technological advance in my lifetime,” more transformative than the internet or personal computer, capable of improving healthcare, education, and addressing climate change.
  • Larry Ellison — through Oracle, is spending billions on Nvidia chips and partnering with Cohere to embed generative AI across Oracle’s cloud and apps.
  • Warren Buffett — not known for tech hype — says this breakthrough could have a ‘hugely beneficial social impact.

When billionaires from Silicon Valley to Wall Street line up behind the same idea — you know it’s worth paying attention to.

Even as we admire what Tesla, Nvidia, Alphabet, and Microsoft have built, we believe an even greater opportunity lies elsewhere…

But the real story isn’t Nvidia — it’s a much smaller company quietly improving the critical technology that makes this entire revolution possible.

And judging by what I’m hearing from both Silicon Valley insiders and Wall Street veterans…

This prediction might not be bold at all:

A few years from now, you’ll wish you’d owned this stock.

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Dr. Inan Dogan

Dr. Ian Dogan

Co-Founder and Research Director at Insider Monkey

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