TSX:FNV 90.77 +0.06 +0.07%
Volume 446,787
April 20, 2018
NYSE:FNV 71.21 -0.38 -0.53%
Volume 566,791
April 20, 2018
Gold 1,335.88 -10.47 -0.78%
April 20, 2018
Contact Share
Precious Metals

Location: Australia
Operator: Regis Resources Ltd.
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR royalty that covers 2,678 km2 of the Duketon gold project in Western Australia. The project is operated by Regis Resources Ltd. (“Regis”) and includes five operating mines and eight other deposits at various stages of development. The royalty covers all known Mineral Reserves and Mineral Resources, except for the Gloster deposit and a portion of the Erlistoun deposit Mineral Resources. In November 2016 Regis reported production of 305,084 ounces of gold for the fiscal year ending June 30, 2016, and provided production guidance as follows: 300,000-330,000 ounces of gold for the fiscal year ending June 30, 2017; 320,000-350,000 ounces of gold for the fiscal year ending June 30, 2018; and 340,000-370,000 ounces of gold for the fiscal year ending June 30, 2019.

Duketon Southern Operations (“DSO”): Regis reported DSO production of 225,994 ounces of gold for calendar 2016, all from royalty ground. DSO has three operating mines at Garden Well, Rosemont and Erlistoun. Garden Well has been in production since September 2012 and has a 5 Mt per annum plant. Rosemont has been in production since October 2013 and has a 2 Mt per annum plant. Milled ore from Rosemont is piped 10 km in a slurry form for leaching at Garden Well. Erlistoun was developed during 2016, with first ore hauled 8 km north to Garden Well late in Q4 2016. Erlistoun ore is expected to have a positive effect on grade and throughput at Garden Well in 2017. Regis has estimated that 100% of Erlistoun Mineral Reserves and 89% of Erlistoun Mineral Resources are covered by Franco-Nevada’s royalty.

Duketon Northern Operations (“DNO”): Regis reported DNO production of 82,835 ounces of gold for calendar 2016. DNO has two operating mines at Moolart Well and Gloster. Moolart Well has been in production since August 2010 and has a 2.8 Mt per annum plant. Gloster was developed during 2016, with first ore processed during Q4 2016. Gloster is not covered by Franco-Nevada’s royalty. Gloster is expected to provide 3 years of mill feed to the Moolart Well processing plant partially displacing Moolart Well ore.

With an extensive land position, and an active exploration program, Regis continues to add to the overall Mineral Reserve and Mineral Resource base at Duketon. Regis announced maiden Mineral Reserves at Baneygo and Gloster in 2016. In Q3 2016, Regis announced a maiden Mineral Resource at Tooheys Well, 2.5 km south of Garden Well. Other notable exploration activity is extensive drilling at Rosemont South, outside current Mineral Reserves, and underground drilling at Rosemont Main, to test underground targets below the pit.

2016 2015 2014
Total Revenue to FNV ($ million) $ 7.2 $ 6.7 $ 7.1