TSX:FNV 96.53 -0.89 -0.91%
Volume 314,497
June 27, 2017
NYSE:FNV 73.25 -0.29 -0.39%
Volume 255,828
June 27, 2017
Gold 1,246.30 -9.90 -0.79%
Volume 269
June 26, 2017
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Location: Ghana
Operator: Newmont Mining Corporation
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR royalty which covers a 78 km2 area of Newmont’s Ahafo project in Ghana (shown in the schematic). Franco-Nevada’s royalty is believed to cover most, if not all, of the Subika open-pit as well as a majority of the Subika underground mineralization identified to date. The royalty first became payable to Franco-Nevada in the third quarter of 2012. Ahafo production has steadily declined in recent years from 570,000 ounces in 2013 to 349,000 ounces in 2016. For 2017, Newmont anticipates production of 305,000-335,000 ounces of gold from Ahafo.

Newmont is expected to make a decision in Q2 2017 whether to develop the Subika underground. First production could potentially begin in the second half of 2017 with commercial production beginning in late 2018. The project would increase average annual gold production by 150,000-200,000 ounces per year for the first five years beginning in 2019, with an initial mine life of approximately 11 years.

In addition, Newmont is exploring a mill expansion at Ahafo which is designed to maximize resource value by improving production margins and accelerating stockpile processing. A decision is expected in the first half of 2017 with first production potentially beginning in 2019. The expansion would increase average annual gold production by 75,000-100,000 ounces per year for the first five years beginning in 2020.

2016 2015 2014
Total Revenue to FNV ($ million) $ 4.8 $ 4.3 $ 9.0