TSX:FNV 87.46 -0.02 -0.02%
Volume 202,231
August 21, 2018
NYSE:FNV 67.19 +0.13 +0.19%
Volume 186,019
August 21, 2018
Gold 1,194.32 +1.69 +0.14%
Volume
August 21, 2018
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Location: Ghana
Operator: Newmont Mining Corporation
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR royalty which covers a 78 km2 area of Newmont’s Ahafo project in Ghana (shown in the schematic). Franco-Nevada’s royalty is believed to cover most, if not all, of the Subika open-pit as well as a majority of the Subika underground mineralization identified to date. The royalty first became payable to Franco-Nevada in the third quarter of 2012. Ahafo produced 349,000 gold ounces in 2017 which was unchanged from 2016. For 2018, Newmont anticipates production of 435,000-465,000 gold ounces which represents the first year-over-year increase in a number of years.

Newmont made two significant announcements in 2017 with plans to develop the Subika underground deposit and proceed with the Ahafo mill expansion. First production from the underground already occurred in June 2017 with commercial production expected in the second half of 2018. The project is expected to increase average annual gold production by 150,000-200,000 gold ounces per year for the first five years beginning in 2019 with an initial mine life of approximately 11 years. The Ahafo mill expansion is expected to improve production margin and accelerate stockpile processing. First production is expected in the first half of 2019 with commercial production expected in the second half of 2019. The expansion is expected to increase average annual gold production by 75,000-100,000 ounces per year for the first five years beginning in 2020. Together, the mill expansion and Subika underground are expected to improve Ahafo’s production to 550,000-650,000 ounces per year for the first five full years of production (2020-2024).

ASSET HIGHLIGHTS:

  • Commercial production from Subika underground expected H2 2018
  • Mill expansion also announced; first production expected in 2019
  • Together, projects expected to increase production to 550,000-650,000 gold ounces per year for first five years of production

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 6.6 $ 4.8 $ 4.3