Franco-Nevada has an interest in both the gold and copper production from the Robinson open pit mining complex near Ely, Nevada. The operation and the gold royalty interests are discussed in more detail above under “Gold Assets – Producing Gold Assets – Robinson (Gold), Nevada”. Under an agreement purchased from Nerco, Franco-Nevada receives a 0.225% NSR on all production. Under an agreement purchased from Alta, Franco-Nevada is also entitled to 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).

Quadra FNX announced that the Robinson mine produced 109 million pounds of copper in 2010 and, therefore, did not meet the copper production threshold required to trigger the royalty payment under the Alta agreement. Quadra FNX has given production guidance for 2011 of 105 to 120 million pounds of copper. However, an early 2011 localised pit wall failure may trigger a change to the mining schedule. Quadra FNX is evaluating alternatives, including incorporating ores from its historically mined Liberty pit, which it expects will add medium-term mining flexibility.