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

SOUTH AFRICA, REST OF WORLD
OPERATOR: ANGLOGOLD ASHANTI LIMITED
STREAM: 25% GOLD STREAM

Franco-Nevada, through its acquisition of Gold Wheaton in March 2011, receives 25% of gold produced from the Mine Waste Solutions (“MWS”) project. MWS is a gold and uranium tailings recovery operation located near Stilfontein, approximately 160 km west of Johannesburg, South Africa. The operation processes multiple tailings dumps in the area through three production modules. It also includes a modern tailings storage facility approximately 15 km from the gold plant. Franco-Nevada makes ongoing payments equal to the lesser of $424/ounce of payable gold (subject to a 1% annual inflation that commenced December 2012) and the spot price for gold.

AngloGold Ashanti Limited (“AngloGold Ashanti”) purchased the operation from First Uranium Corporation in July 2012. As part of the AngloGold Ashanti purchase, Franco-Nevada amended the agreement and is now entitled to receive 25% of all the gold produced through the MWS plant including treatment of AngloGold Ashanti’s tailings until Franco-Nevada has received 312,500 ounces of gold, starting on January 1, 2012. In 2017, Franco-Nevada was delivered 27,094 ounces of gold (28,397 ounces sold in 2017). As at December 31, 2017, Franco-Nevada has sold 142,066 ounces of gold of the 312,500 ounce cap since the amendment of the agreement.

ASSET HIGHLIGHTS:

  • Franco-Nevada entitled to 25% of all gold produced until 312,500 ounces received
  • Limited upside given production cap on payments

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 35.8 $ 27.1 $ 26.2