Operator: KGHM International Ltd.
Royalty: NSR: 0.225% / other
The Robinson open pit mining complex, operated by KGHM produces copper, gold and molybdenum and is located near Ely, Nevada. Franco-Nevada has three royalties covering the Robinson mine: 1) a 0.225% NSR on all base metal and associated precious metal production; 2) a 10% NSR on 51% of the gold production from the property in excess of 60,000 ounces of gold per year; and 3) under a copper agreement, a price participation royalty on 51% of 40% of each pound of copper production from the property in excess of 130 million pounds of copper, multiplied by the spot price, less $1.00 per pound adjusted for inflation (based on 1990 dollars). Amounts are only payable in any year in which the average price of copper during that year exceeds a $1 per pound threshold, as adjusted for inflation (based on 1990 dollars). Copper production for the first nine months of 2016 decreased by 6% while gold production decreased by 16% due to extended maintenance shutdown of the floatation thickening unit. As a result, Franco-Nevada was only paid on the base 0.225% NSR royalty.