UPDATE 1-Franco Nevada profit rises on derivatives gain

* Q3 adjusted EPS $0.07 vs analyst forecast $0.08

* Takes $4.5 million gain on derivatives

* Revenue climbs 3 pct (In U.S. dollars, unless noted)

TORONTO, Nov 9 (Reuters) - Franco Nevada (FNV.TO) said on Monday its quarterly profit rose by 24 percent as a $4.5 million derivatives gain more than offset the impact of lower royalty revenues.

The Toronto-based resource royalty company earned $12.3 million, or 11 cents a share, in its second quarter, ended Sept. 30. That compared with a profit of $9.9 million, or 10 cents a share, in the year-before quarter.

Stripping out items, including the derivatives gain, the company earned $7.3 million, or 7 cents a share, just shy of the 8 cents a share expected by analysts polled by Thomson Reuters I/B/E/S.

Revenue rose 3 percent to $41.1 million as the derivatives gain offset lower royalty revenues. (Reporting by Cameron French; editing by Peter Galloway)