Operator: New Gold Inc.
Royalty: GR: 1.95%
Franco-Nevada has a 1.95% GR that covers most of the known mineralization on the Cerro San Pedro project operated by New Gold. Cerro San Pedro is located in the San Luis Potosi mining district of central Mexico. The project is a gold-silver, open-pit, run-of-mine heap leach operation and consists of 36 mining and exploration concessions totaling 78 km2.
Gold production at Cerro San Pedro increased 51% in 2015 compared with 2014 due to more ore tonnes placed on the leach pad and less waste stripping. Production in 2015 amounted to 105,500 ounces of gold and 1.5 million ounces of silver versus 69,800 ounces of gold and 1.1 million ounces of silver in 2014. 2015 gold production was higher than indicated guidance at the beginning of the year of 90,000-100,000 ounces of gold and silver production was slightly lower than the envisioned 1.75-1.95 million ounces of silver.
2015 represented the final full year of active mining at Cerro San Pedro and 2016 gold production is scheduled to decline to a range of 60,000 to 70,000 ounces as the mine transitions to residual leaching. Based on slower leach kinetics for silver, 2016 production is expected to only decline slightly to a range of 1.3-1.5 million ounces. Gold production from residual leaching in 2017 is expected to be approximately 40% of the targeted 2016 production and silver production for 2017 is expected to be approximately 1 million ounces.
|Total Revenue to FNV ($ million)