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Franco-Nevada

South Kalgoorlie (Au)

Location: Australia
Operator: Northern Star Resources Limited
Royalty: NSR: 1-1.75%

Northern Star Resources Limited (“Northern Star”) operates the South Kalgoorlie Operation (“SKO”) which has been producing gold since 1989. Northern Star acquired SKO from Westgold Resources Limited in 2018. SKO is located 15 km south of Kalgoorlie in Western Australia. Franco-Nevada holds a 1.75% NSR royalty for gold and a 1% NSR royalty for other minerals which covers 470 km2 of the SKO tenements including the northern and central sections of the HBJ deposit and all of the Mt Marion, Pernatty and Mt Martin deposits. Mining was stopped by the previous owner in 2013 but processing continued from a combination of low-grade stockpiles and third party ore at the 1.2 Mt per annum Jubilee mill. Open-pit mining resumed in January 2015 and underground mining resumed in June 2015. Northern Star combines SKO with the nearby Kundana and Kanowna Belle gold mines, and reported total production of 338,723 ounces of gold at the combined Kalgoorlie Gold Operations for the year ended December 31, 2019. Northern Star also processes a significant portion of toll-treated ore at the Jubilee mill. Franco-Nevada estimates that the royalty production accounts for approximately 15% of total combined Kalgoorlie Gold Operations production. Franco-Nevada received $1.3 million of royalty revenue from SKO in 2019.