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: Ghana
Royalty: NSR: 1.5%
Operator: Perseus Mining Limited

In 2011, Franco-Nevada acquired an effective 1.5% NSR royalty on Perseus Mining Limited’s (“Perseus”) Edikan gold mine in Ghana. Perseus has 482 km2 of tenements centered on the Ashanti Gold Belt including two mining leases of approximately 93 km2 that are the focus of initial production.

In June 2015, Perseus’ Supplementary Environmental Impact Statement was approved which was required for mining the Fetish, Chirawewa, Bokitsi (collectively referred to as the “Eastern Pits”) and Esuajah North gold deposits. An upgrade to the mill and relocation of housing was successfully completed by the end of 2016. The investment and ongoing efforts in 2016 led to a strong 2017. Annual gold production of 208,226 ounces in calendar year 2017 was the highest annual total since commercial production started in 2012.

With the completion of the Sissingue project in Cote d’Ivoire (see page 76 for Franco-Nevada’s royalty interest), Perseus no longer provides asset by asset guidance. Perseus’ stated company wide production guidance for the first half of 2018 is 140,000-160,000 gold ounces with the majority of production coming from Edikan. Perseus released an updated life of mine plan in February 2017 with anticipated average annual gold production of 214,000 ounces over a 6.5 year mine life (starting July 1, 2017). This includes higher average annual production of approximately 240,000 ounces of gold over the initial five years.

ASSET HIGHLIGHTS:

  • Record annual production achieved in 2017
  • Updated life of mine plan assumes average annual production of 214,000 gold ounces over 6.5 years

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 3.7 $ 3.1 $ 3.7