Milpillas (Cu)

Location: Mexico, Central America & Mexico
Operator: Industrias Peñoles, S.A.B. de C.V.
Royalty: Production Payment

Franco-Nevada has a production payment royalty on the Milpillas copper mine in Sonora, Mexico operated by Industrias Peñoles, S.A.B. de C.V. (“Peñoles”). The royalty is based on $0.04/lb of copper produced, if the price of copper is above $1.20/lb, and covers an estimated 30 km2. The project is an underground copper mine and heap leach operation and was acquired by Franco-Nevada in September 2020 as part of a portfolio of 24 royalties from Freeport-McMoRan Inc. Milpillas paused active mining in mid-2020 and transitioned to residual leaching. Minimal production from Milpillas is expected in the near term; however, potential exists for the operation to restart active mining in the future.