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Franco-Nevada

Tasiast (Au)

Tasiast

Location: Mauritania
Operator: Kinross Gold Corporation
Royalty: NSR: 2%

Franco-Nevada has a 2% NSR royalty on the Tasiast project operated by Kinross that has been payable since the third quarter of 2011. Kinross acquired control of Tasiast in September 2010 pursuant to its acquisition of Red Back Mining Inc. The royalty originally covered three large permit areas in Mauritania, West Africa. The most prominent permit area is Tasiast, with a currently reported mining license area of 312 km2 and a total exploration license area of 3,118 km2.

In 2019, Tasiast produced 391,097 ounces of gold compared with 250,965 ounces in 2018.

The Phase One expansion at Tasiast was completed during the third quarter of 2018. Phase One increased mill capacity from 8,000 tonnes per day (“tpd”) to 12,000 tpd with gold production expecting to average 409,000 ounces per year over 2018-2027. At the time, Kinross planned a Phase Two expansion at Tasiast to increase mill capacity to 30,000 tpd.

In September 2019, Kinross announced it would instead proceed with the Tasiast 24k project, increasing throughput to 21,000 tpd by year-end 2021 and 24,000 tpd by mid-2023. The project is expected to extend the mine life by four years to 2033 with an average annual production of approximately 563,000 gold ounces per year from 2022 to 2028.

In December 2019, Kinross signed a $300 million project financing for Tasiast with the IFC (a member of the World Bank Group), Export Development Canada, and two commercial banks.

ASSET HIGHLIGHTS

  • Phase One expansion complete
  • Project funding in place for Tasiast 24k expansion
  • Tasiast 24k on track to ramp-up to 21,000 tpd by year-end 2021 and 24,000 tpd by mid-2023
  • Prospective 75 km long greenstone belt

2019 2018 2017
Revenue to Franco-Nevada ($ million) $ 10.9 $ 6.3 $ 6.2
Tasiast map