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
Contact Share

Location: Australia
Royalty: NSR: 2% (capped at A$15M)
Operator: Shanxi Donghui Coal Coking & Chemicals Group Co., Ltd.

Effective July 1, 2013, Franco-Nevada acquired a 2% NSR royalty on the Osborne Copper-Gold project which is now operated by Shanxi Donghui Coal Coking & Chemicals Group Co., Ltd. (“Shanxi”), a private company incorporated in China. Royalty payments are capped at A$15 million with A$1.6 million in royalty payments paid prior to acquisition.

The Osborne Copper-Gold project is located 195 km southeast of Mount Isa in Queensland, Australia. Franco-Nevada’s royalty covers 413 km2 and includes all Mineral Resources at the Kulthor and Osborne deposits. Previous owners operated the Osborne mine and plant from 1995 to 2010. Inova Resources Limited (“Inova”) acquired the project in 2010 and restarted mining operations in 2012, ramping up to full capacity in 2013. Inova was acquired by Shanxi on November 15, 2013. The Osborne plant capacity is 1.4-1.6 Mt per annum. During 2017 all mining at Osborne was completed and production shifted to the low-grade stockpiles. All production during 2017 was from Franco-Nevada’s royalty area. Shanxi is a private company and does not publicly report operating results.

ASSET HIGHLIGHTS:

  • 100% of production now from royalty area
  • Royalty payments capped at A$15 million

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 2.4 $ 1.4 $ 2.6