TSX:FNV 87.37 -0.11 -0.13%
Volume 221,756
August 21, 2018
NYSE:FNV 67.06 +0.00 +0%
Volume 191,156
August 21, 2018
Gold 1,193.93 +1.30 +0.11%
Volume
August 21, 2018
Contact Share

Location: Arizona
Royalty: NSR: 1.5%
Operator: HudBay Minerals Inc.

Franco-Nevada has a 1.5% NSR royalty covering all metals including copper, molybdenum, silver and gold extracted from the majority of claims covering the Rosemont project which is located in Pima County, approximately 30 miles southeast of Tucson, Arizona. The project is 80% owned by Hudbay Minerals Inc. (“Hudbay”) following its acquisition of Augusta Resource Corporation (“Augusta”). The Rosemont property contains three known potentially open-pit mineable deposits (Rosemont, Peach Elgin and Broadtop Butte) and is situated near a number of large porphyry type producing copper mines.

Hudbay released a feasibility study for the Rosemont project in March 2017, representing the first update since 2012 which was conducted by the previous operator. The study estimates total payable production of 1,864,000 metric tonnes of copper, 53,370,000 ounces of silver and 37,600 short tons of molybdenum over a 19 year mine life.

Rosemont has faced a challenging permitting process and is awaiting approval of its remaining permits. Hudbay received the Final Record of Decision for the project in June 2017. The other key federal permit outstanding is the Section 404 Water Permit from the U.S. Army Corps of Engineers. Spending of $35 million in 2018 on the Rosemont project is intended to support ongoing permitting, legal and mitigation efforts, and would increase significantly if permitting is completed and the project is sanctioned for development during 2018.

ASSET HIGHLIGHTS:

  • New feasibility study released in March 2017
  • Final Record of Decision received in 2017; Section 404 Water Permit outstanding
  • Franco-Nevada’s royalty covers all metals including copper, molybdenum, silver and gold

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