OPERATOR: GOLDCORP INC.
ROYALTY: NPI: 5%
Franco-Nevada has a 5% NPI royalty that covers all of the original leased lands at Goldcorp’s Musselwhite operation. The area is estimated to cover 120 km2 in northwestern Ontario, 480 km north of Thunder Bay. The royalty also covers an area of interest surrounding the property as shown in the schematic. The mine is a fly-in/fly out underground operation which began operating in April 1997 and has produced over 3.0 million ounces of gold.
Franco-Nevada received its first payment under the NPI royalty in 2011 as the mine had then recovered all historical capital and operational costs. In 2015, Musselwhite delivered consistent year over year production combined with declining all-in sustaining costs which positively impacted the NPI royalty. Production in 2015 was 270,300 ounces at an all-in sustaining cost of $766 per ounce which was at the high end of its original production guidance of 250,000-270,000 ounces. For 2016, Goldcorp anticipates production between 240,000-260,000 ounces. Goldcorp continues to actively explore with several targets identified. Successful exploration efforts in 2015 led to reserve growth in the PQ Deeps and Upper Lynx areas.
|Total Revenue to FNV ($ million)