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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Antapaccay

Location: Peru
Operator: Glencore PLC
Stream: GOLD AND SILVER STREAM

In February 2016, Franco-Nevada acquired a precious metals stream with reference to production from the Antapaccay mine for $500 million from Glencore plc (“Glencore“) and its subsidiaries. Antapaccay is located within the province of Espinar in Southern Peru–a district with a long mining history. The property also hosts the historic Tintaya open-pit mine and related infrastructure which began operating in 1984. Glencore (Xstrata) invested in excess of $1.5 billion of initial capital to build and commission the Antapaccay open-pit mine and plant, which commenced operations in 2012.

Franco-Nevada received 71,183 GEOs in 2017, essentially unchanged from the 73,612 GEOs received in 2016. Antapaccay stream deliveries are expected to average 70,000 GEOs per year over the next 5 years.

Under the streaming agreement, precious metal deliveries are initially referenced to copper in concentrate shipped. Franco-Nevada will receive 300 ounces of gold and 4,700 ounces of silver for each 1,000 tonnes of copper in concentrate shipped, until 630,000 ounces of gold and 10 million ounces of silver have been delivered. Thereafter, Franco-Nevada will receive 30% of the gold and silver shipped. Franco-Nevada will initially pay an on-going price of 20% of the spot price of gold and silver until 750,000 ounces of refined gold and 12.8 million ounces of refined silver have been delivered. Thereafter, the on-going price will increase to 30% of the spot price of gold and silver.

The stream is referenced to the entire Antapaccay concession covering approximately 997 km2. Glencore is currently studying the development of the Coroccohuayco deposit which is located within 10 km of the Antapaccay plant. Coroccohuayco hosts a 289 million tonne M&I Mineral Resource which is approximately twice the copper grade of the Antapaccay Mineral Reserves. Coroccohuayco could potentially provide supplementary high grade ore. In addition, there are a number of large-scale regional targets and prospects on the Antapaccay concessions.

ASSET HIGHLIGHTS:

  • Precious metals deliveries initially referenced to copper in concentrate shipped
  • Provides significant revenue and cash flow
  • Coroccohuayco potentially to extend mine life
  • Significant land package offers a number of large-scale regional targets

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 90.2 $ 92.5 $ –

AntapaccaySite