Operator: Perseus Mining Limited
Royalty: NSR: 1.5%
In 2011, Franco-Nevada acquired an effective 1.5% NSR royalty on Perseus Mining Limited’s (“Perseus”) Edikan gold mine in Ghana. Perseus has 482 km2 of tenements centered on the Ashanti Gold Belt including two mining leases of approximately 93 km2 that are the focus of initial production.
In June 2015, Perseus’ Supplementary Environmental Impact Statement was approved which was required for mining the Fetish, Chirawewa, Bokitsi (collectively referred to as the “Eastern Pits”) and Esuajah North gold deposits. An upgrade to the mill and relocation of housing was successfully completed by the end of 2016. The ongoing mill upgrade negatively impacted production during the second half of 2016. Subsequent to the plant shutdown in the December 2016 quarter, operating performance has materially improved and operating statistics for the March 2017 quarter to date indicate a significant improvement.
Production guidance for the first six months of 2017 has been lowered to 90,000-110,001 ounces from 125,000-145,000 ounces previously. Perseus released an updated life of mine plan in February 2017 with anticipated average annual gold production of 214,000 ounces over a 6.5 year mine life (starting July 1, 2017). This includes higher average annual production of approximately 240,000 ounces of gold over the next five years.
|Total Revenue to FNV ($ million)