Franco-Nevada

Musselwhite (Au)

Musselwhite

LOCATION: Ontario, Canada
OPERATOR: Newmont Corporation
ROYALTY: NPI: 5%; NSR: 2%

Franco-Nevada has a 5% NPI royalty that covers all of the original leased lands at the Musselwhite operation. The area is estimated to cover 120 km2 in northwestern Ontario, 480 km north of Thunder Bay. The royalty also covers an area of interest surrounding the property as shown in the schematic. Franco-Nevada’s Musselwhite interest is a profit royalty which did not become payable until historical capital and operational costs had been recovered by the operator in 2011.

The mine is a fly-in/fly-out underground operation which began operating in April 1997 and has produced over 3.0 million ounces of gold. Franco-Nevada anticipates payments from its NPI royalties from Musselwhite to resume in 2021, after Newmont announced in December 2020 that the mine had been ramping up to full operations after the commissioning of its conveyor and material handling systems. Operations had been reduced since March 2019 due to a fire at the mine and COVID-19 restrictions.

The Materials Handling Project is expected to increase production from 3,600 tpd to 4,300 tpd. The project will enable hoisting of ore through an underground winze which will result in reduced reliance on high-cost truck haulage leading to improved energy efficiency, reduced ventilation requirements, reduced mining costs and an enhanced production profile.

In September 2019, Franco-Nevada acquired from Premier a 2% NSR on property owned by Newmont, adjoining Musselwhite, and covering approximately 6.3 km2 of the projected northwest extension of Newmont’s Musselwhite mine, as shown in the schematic.

ASSET HIGHLIGHTS

  • Material Handling Project to positively impact production and operating costs
  • Large land package with additional royalty covering the projected northwest extension of Musselwhite

2020 2019 2018
Revenue to Franco-Nevada ($ million)1 $ – $ - $ 0.6

1 Revenue to Franco-Nevada represents the actual NPI revenue paid and earned for each year

Musselwhite map