Operator: Kinross Gold Corporation
Royalty: NSR: 2%
Franco-Nevada has a 2% NSR royalty on the Tasiast project operated by Kinross. Franco-Nevada’s royalty first became payable in the third quarter of 2011. Kinross acquired control of Tasiast in September 2010 pursuant to its acquisition of Red Back Mining Inc. The royalty originally covered three large permit areas in Mauritania, West Africa of which the most prominent is Tasiast with a currently reported mining license area of 312 km2 and a total exploration license area of 3,118 km2.
In 2016, Tasiast produced 175,176 ounces of gold compared to 219,045 ounces produced in 2015 mainly due a six-week suspension of mining. Kinross does not provide asset specific guidance but anticipates regional production of 420,000-470,000 ounces from West Africa versus the 365,935 ounces produced in 2016 on a regional basis.
Kinross announced in March 2016 plans to proceed with Phase One of the Tasiast expansion which is now in construction. Phase One is expected to increase mill capacity from the current 8,000 tonnes per day to 12,000 tonnes per day with gold production to average 409,000 ounces per year over 2018-2027. As of February 2017, Kinross reports that the project is on schedule and budget, with full commercial production expected in Q2 2018. Kinross is currently completing the Phase Two feasibility study which is expected to be completed in Q3 2017. Phase Two contemplates installing an additional 18,000 tpd of throughput capacity, an expanded power plant, and upgraded infrastructure which would increase annual production to 780,000 ounces per year. Kinross expects to make a development decision on Phase Two once the feasibility study has been completed.
|Total Revenue to FNV ($ million)