Franco-Nevada stock has remained subdued but is doing better than many of its peers. It is still up 20% from the recent low of $34.50. However, despite the correction from the highs of $61, the stock still trades at 14 times sales and 65 times earnings. This makes the future possibilities a little restricted unless gold does a complete turnaround. Gold may test $1350 again and that needs to hold. The Fed's comments about going easy on easing may have made the analysts a little more defensive on the sector. $44.50 will be a strong resistance. Meanwhile, the company has started to put cash to work and the completion of the deal with Midas Gold is a small signal. Some of these gold assets may be available at good valuations and companies have started investing with a long term focus. Franco-Nevada has got a portion of the royalty rights which may gain in value over the next few years. Once the production starts, the royalties will add to the cash flow. The $15 million deal will help Midas Gold in development of the property and speeding up the activities. Franco-Nevada had $825 million cash on books on March 31. It has zero debt on books and that helps matters, especially in these times. What is important is to identify good assets, which are in sync with the strategy of the company. Pershing Gold Corporation (PGLC), a company which is on the threshold of production is available at very low valuations. Companies like these do need money for investing in their assets, and depending upon the potential of the assets, the investors can gain from capital appreciation. The Midas CEO stated that the project has high-grade mineral resource where low-cost, open pit mining operation is possible. These properties were in operation earlier and the restoration may lead to an efficient and modern facility. More such deals can be expected in the sector.