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.
Cerro San Pedro finished active mining late in the second quarter of 2016 and has now transitioned into residual leaching. As a result, gold production decreased to 64,993 ounces in 2016 compared to 105,512 gold ounces in 2015. Silver production also decreased in 2016 to 0.9 million ounces from 1.5 million ounces in 2015. 2016 full-year gold production achieved the mid-point of the guidance range of 60,000-70,000 ounces while silver production was below the guidance range of 1.3-1.5 million ounces.
For 2017, New Gold expects gold production of 35,000-45,000 ounces which represents the first full year of residual leaching. New Gold did not provide asset specific guidance for silver production but previously had indicated 2017 production of approximately 1 million ounces for Cerro San Pedro.
|Total Revenue to FNV ($ million)