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

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 of which the most prominent is Tasiast with a currently reported mining license area of 312 km2 and a total exploration license area of 3,118 km2.

In 2017, Tasiast produced 243,240 ounces of gold compared to 175,176 ounces produced in 2016 mainly due to higher mill grades, throughput and the impact of a temporary suspension of mining in 2016. Kinross does not provide individual mine guidance.

In March 2016, Kinross announced plans to proceed with Phase One of the Tasiast expansion which is now in construction. Phase One is expected to increase mill capacity from the current 8,000 tonnes per day to 12,000 tonnes per day with gold production to average 409,000 ounces per year over 2018-2027. As of February 2018, Kinross reports that the project is on schedule and budget with the plant construction approximately 93% complete. Kinross expects full commercial production by the end of June 2018.

In September 2017, Kinross announced plans to proceed with the Phase Two expansion at Tasiast. Phase Two is expected to increase mill capacity to 30,000 tonnes per day and produce an average of approximately 812,000 gold ounces per year for the first five years. Over the life of the project (2020-2029), annual production is expected to average approximately 634,000 ounces per year. Commercial production is expected to begin in Q3 2020.

In addition, Kinross is now advancing pre-feasibility work at Tasiast Sud which is on track for completion in H2 2018. The study is evaluating potential for a dump leach operation of low grade material from three deposits. Higher grade material from the deposit is expected to be transported to the CIL mill. In 2017, Kinross completed over 47,000 meters of drilling focused on two targets, C6.13 and C6.15. Drilling has identified continuous mineralization along an 8 km strike to depths of up to 200 meters. Following the drill campaign, Kinross added 820,000 ounces to the Inferred Mineral Resource estimates at Tasiast Sud.

ASSET HIGHLIGHTS:

  • Phase One expansion currently being constructed; commercial production in Q2 2018
  • Phase Two expansion to proceed; commercial production in Q3 2020
  • Prospective 75 km long greenstone belt

2017 2016 2015
Revenue to Franco-Nevada ($ million) $ 6.2 $ 4.4 $ 5.0