TSX:FNV 82.53 -0.90 -1.08%
Volume 967,041
September 21, 2018
NYSE:FNV 63.95 -0.66 -1.02%
Volume 1,891,366
September 21, 2018
Gold 1,200.30 -8.03 -0.66%
Volume
September 21, 2018
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Location: ONTARIO
Operator: TAHOE RESOURCES INC.
ROYALTY: NSR: 2.25%

Franco-Nevada acquired a 2.25% NSR royalty on Tahoe Resources Inc.’s (“Tahoe”) Timmins West property in February 2012. The royalty covers a large land package of approximately 130 km2 to the west of the City of Timmins, Ontario which hosts the Timmins and Thunder Creek deposits as well as the 144 exploration zones and the Gold River Trend. In 2016, Tahoe acquired Lake Shore Gold Corp., the previous operator of the mine.

The Timmins properties (including Bell Creek on which Franco-Nevada does not have a royalty) produced 167,000 gold ounces in 2017 which was at the low end of the original guidance range of 165,000-185,000 ounces. This estimate includes production from Bell Creek. For 2018, Tahoe expects production from the Timmins properties to be between 160,000-175,000 ounces.

Mineral Reserves at Timmins West increased substantially in 2017 which was mainly attributable to the initial Mineral Reserve for the 144 Gap deposit. Mineral Reserves increased from 233,000 ounces (2.0 Mt @ 3.69 g/t) to 738,000 ounces (7.1 Mt @ 3.21 g/t) which may help extend the mine life of the operation. Exploration continues on the property including targeting zones below the Thunder Creek deposit and drilling/test work at the Gold River Trend.

ASSET HIGHLIGHTS:

  • Maiden 144 Gap Zone Mineral Reserve released in 2017
  • Mineral Reserves increased substantially year over year

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 3.4 $ 3.2 $ 3.7