TSX:FNV 98.14 -1.44 -1.45%
Volume 497,493
August 18, 2017
NYSE:FNV 78.03 -0.56 -0.71%
Volume 534,988
August 18, 2017
Gold 1,286.40 +9.50 +0.74%
Volume 110
August 17, 2017
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LOCATION: ONTARIO
OPERATOR: BARRICK GOLD CORPORATION
ROYALTY: NSR: 3% / NPI: 50%

The Hemlo gold camp has been producing gold for over 25 years and is located just off the Trans-Canada highway near Marathon, Ontario. Barrick is the operator and manages both the open-pit and underground operations. Franco-Nevada has both a 3% NSR royalty and a 50% NPI royalty on a portion of the western down-dip underground extension of the Hemlo ore-body as shown in the longitudinal schematic.

Initial mining on the royalty property began in late 2008, but revenues were limited to the 3% NSR royalty. The 50% NPI portion of the royalty began paying in third quarter of 2012 after the upfront capital costs had been recovered by Barrick. In 2016, Hemlo generated $10.8 million in NPI payments compared with $3.6 million in 2015. Hemlo produced 235,000 ounces of gold in 2016 compared with 219,000 ounces of gold in 2015. All-in sustaining costs increased to $839 per ounce in 2016 versus $651 per ounce in 2015. For 2017, gold production is expected to be 205,000-220,000 ounces at an all-in sustaining cost of $880-$980 per ounce.

Hemlo’s Mineral Resources increased significantly year-over-year although these Mineral Resources are not entirely covered by the royalty. Through drilling and cost improvements, Hemlo added 920,000 ounces to Mineral Reserves.


2016 2015 2014
Total Revenue to FNV ($ million) $ 12.7 $ 5.0 $ 9.6