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Volume 739,207
July 19, 2019
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Volume 728,243
July 19, 2019
Gold 1,425.47 -20.78 -1.44%
Volume
July 19, 2019
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Franco-Nevada

Tasiast (Au)

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 2018, Tasiast produced 250,965 ounces of gold compared with 243,240 ounces in 2017. The operation produced a record amount of gold in the fourth quarter 2018 with the completion of the Phase One expansion (detailed below). Kinross does not provide individual mine guidance moving forward but stated that it expects Tasiast to continue to deliver strong operational performance in 2019.

The Phase One expansion at Tasiast was completed during the third quarter of 2018. Phase One is expected to increase mill capacity from 8,000 tonnes per day to 12,000 tonnes per day with gold production averaging 409,000 ounces per year over 2018-2027.

In September 2017, Kinross announced plans to proceed with the Phase Two expansion at Tasiast. Phase Two was subsequently put on hold in 2018 as Kinross analyzes alternative intermediate throughput expansion options and engages in discussion with the Government of Mauritania. Phase Two was 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.

Kinross was not granted an exploitation license for the Tasiast Sud project which it was advancing towards pre-feasibility. The study was evaluating potential for a dump leach operation of low grade material from three deposits.

ASSET HIGHLIGHTS:

  • Phase One expansion completed
  • Phase Two expansion activities paused as Kinross engages in discussions with the Government of Mauritania
  • Prospective 75 km long greenstone belt

2018 2017 2016
Revenue to Franco-Nevada ($ million) $ 6.3 $ 6.2 $ 4.4