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Cobre Panama (Au & Ag)


Stream: Gold and Silver Stream

Cobre Panama is one of the world’s largest copper-gold-silver porphyry deposits in operation and is 90% owned by First Quantum Minerals Ltd. (“First Quantum”) and 10% by Korea Resources Corp. (“KORES”). A subsidiary of Franco-Nevada contributed a total of $1.36B to the construction of Cobre Panama. Franco-Nevada has two precious metals streams with slightly different terms:

  • Fixed Ongoing Payment Stream - Effective since 2015 and applies to First Quantum’s original 80% interest in the Cobre Panama project.
  • Floating Ongoing Payment Stream - In January 2018, a subsidiary of Franco-Nevada agreed to add a new precious metals stream which increased its coverage to 100% of the ownership of the Cobre Panama project. Effective since March 2018 and applies to First Quantum’s 10% indirect interest acquired from LS-Nikko Copper Inc.’s and KORES’ 10% indirect interest.

Franco-Nevada has fully funded its project commitment. The amount of precious metals deliverable under both the Fixed Payment Stream and Floating Payment Stream is indexed to total metal-in-concentrate shipped. The main difference between the Fixed Payment Stream and Floating Payment Stream is the ongoing price per ounce paid. As of November 2019, the current ongoing payment of the Fixed Payment Stream is fixed per ounce payments of $430.91/oz gold and $6.46/oz silver with a 1.5% annual inflation factor. The Floating Payment Stream ongoing price per ounce for deliveries is 20% of the spot price for the current Mineral Reserve life and higher thereafter.

First Quantum introduced first ore into the milling circuit on February 11, 2019 at Cobre Panama and the project achieved commercial production on September 1, 2019. As of December 2019, all four in-pit primary crushers and all 8 mills (3 SAG and 5 ball mills) were in operation. Mill throughput is expected to ramp-up to annualized throughput of 85 million tonnes per annum (“Mtpa”). First Quantum has stated the potential to accommodate a further increase to 100 Mtpa by 2023. From January 1, 2019 until the mill throughput reached 58 Mtpa, Franco-Nevada was entitled to a 5% return on its capital invested. The return will be achieved by a $100 per gold ounce discount in the ongoing price for the initial ounces acquired. Cobre Panama has a planned mine life of 34 years.

The delivery of precious metals to Franco-Nevada is indexed off the copper in concentrate shipped. Franco-Nevada sold 43,554 GEOs from the mine in 2019.


  • Potential expansion planned to achieve target throughput of 100 Mtpa by 2023
  • Concession covers an area of approximately 130 km2

2019 2018 2017
Revenue to Franco-Nevada ($ million) $ 64.7 $ – $ –