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Volume 446,787
April 20, 2018
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April 20, 2018
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Location: Australia
Operator: Arrium Limited
Royalty: Production Payment

Franco-Nevada has a variable dollar per tonne royalty on the Peculiar Knob iron ore project located northwest of Prominent Hill in South Australia which is operated by Arrium Limited (“Arrium”). The royalty rate is A$0.5985 multiplied by the percentage of iron ore content in ore shipped quarterly and is also adjusted for movements in the iron ore index price from a base date of December 4, 2003. Franco-Nevada estimates this royalty to be comparable to a 2% gross royalty. Franco-Nevada’s royalty interest covers 2.5 km2 and includes all known Mineral Reserves and Mineral Resources at the Peculiar Knob iron ore deposit. On January 23, 2015, Arrium announced that due to a substantial fall in iron ore prices, there will be a re-design of mining operations and Peculiar Knob will be closed. Mining ended in March 2015 and Peculiar Knob was mothballed in June 2015.