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Volume 436,840
April 28, 2017
NYSE:FNV 68.12 +1.10 +1.64%
Volume 1,010,009
April 28, 2017
Gold 1,262.10 -3.50 -0.28%
Volume 356
April 26, 2017
Contact Share

LOCATION: MONTANA
OPERATOR: STILLWATER MINING COMPANY
ROYALTY: NSR: 5%

The Stillwater complex is comprised of the Stillwater mine and East Boulder mine in Montana and is operated by Stillwater Mining Company (“Stillwater”). Production began in 1986 at the Stillwater mine and in 2002 at the East Boulder mine. Both are PGM mines with the majority of production being palladium. Franco-Nevada has a 5% NSR royalty on all commercially recoverable metals produced from 813 of the 995 claims that cover the Stillwater complex. The amount of the royalty is reduced by permissible “onward processing” deductions, which have averaged 10-12% of revenue over the last several years.

Based on Franco-Nevada’s estimates, the NSR royalty currently covers over 90% of the Stillwater Mineral Reserves and 100% of the East Boulder Mineral Reserves. Historically, because of reliance on near-shaft stopes in the Stillwater mine, production has been sourced disproportionately from non-Franco-Nevada royalty ground. However, in recent years, the percentage of Stillwater complex production subject to Franco-Nevada’s royalty has increased. Stillwater produced 545,000 PGM ounces in 2016, exceeding the original guidance range of 515,000-535,000 PGM ounces and represents a 4.7% increase to 2015 production of 520,800 PGM ounces. Stillwater has not provided guidance for 2017.

The Blitz project, located east of the Stillwater mine and covered by the NSR, is progressing well. Stillwater anticipates that the Blitz project will add between 270,000-330,000 PGM ounces of incremental production annually when fully ramped up by 2021-2022. This is an increase from the 150,000-200,000 PGM ounces that Stillwater previously expected from the Blitz project. On December 9, 2016, Sibanye Gold Limited (“Sibanye”) entered into a definitive agreement to acquire Stillwater. The transaction valued Stillwater at an aggregate enterprise value of $2.2 billion and is expected to close in the second quarter of 2017.


2016 2015 2014
Revenue to Franco-Nevada ($ million) $ 14.6 $ 15.6 $ 22.1