Franco-Nevada

Tasiast (Au)

Tasiast

Location: Mauritania, Rest of World
Operator: Kinross Gold Corporation
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR royalty on the Tasiast project operated by Kinross. Kinross acquired control of Tasiast in September 2010 pursuant to its acquisition of Red Back Mining Inc. The royalty originally covered three large permit areas in Mauritania, West Africa which includes the Tasiast main trend and Tasiast Sud. The most prominent permit area is Tasiast, with a currently reported mining license area of 312 km2 and a total exploration license area of 3,118 km2.

In 2020, Tasiast produced 406,509 ounces of gold compared with 391,097 ounces in 2019. Kinross is implementing a phased expansion of Tasiast. The Phase One expansion was completed during the third quarter of 2018. Phase One increased mill capacity from 8,000 tpd to 12,000 tpd with gold production expected to average 409,000 ounces per year over 2018 to 2027. At the time, Kinross planned a Phase Two expansion at Tasiast to increase mill capacity to 30,000 tpd.

In September 2019, Kinross announced it would instead proceed with the Tasiast 24k project, increasing throughput to 21,000 tpd by year-end 2021 and 24,000 tpd by mid-2023. Kinross expects production at Tasiast to increase in 2021 as mining accesses higher grade ore zones and throughput capacity is increased. The project is expected to extend the mine life by four years to 2033 with an average annual production of approximately 563,000 gold ounces per year from 2022 to 2028.

In June 2020, Kinross announced that it had reached terms with the Government of Mauritania to enhance the partnership between the two parties. Under the terms of the agreement, a 30-year exploitation license for Tasiast Sud would be granted, among other items. In December 2019, Kinross signed a $300 million project financing for Tasiast with the IFC (a member of the World Bank Group), Export Development Canada, and two commercial banks.

ASSET HIGHLIGHTS

  • Tasiast 24k on track to ramp-up to 24,000 tpd by mid-2023
  • Prospective 75 km long greenstone belt, including Tasiast Sud

2020 2019 2018
Revenue to Franco-Nevada ($ million) $ 14.3 $ 10.9 $ 6.3
Tasiast map