TSX:FNV 82.53 -0.90 -1.08%
Volume 967,041
September 21, 2018
NYSE:FNV 63.95 -0.66 -1.02%
Volume 1,891,366
September 21, 2018
Gold 1,200.30 -8.03 -0.66%
Volume
September 21, 2018
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Goldstrike

LOCATION: NEVADA
ROYALTY: NSR: 2-4% / NPI: 2.4-6%
OPERATOR: BARRICK GOLD CORPORATION

Franco-Nevada holds royalties covering the majority of the Goldstrike complex operated by Barrick which remains one of Barrick’s core mines. The Goldstrike complex is located on the Carlin Trend, about 60 km northwest of the town of Elko, Nevada. The Goldstrike complex includes the open-pit Betze-Post mine, as well as the underground operations of Meikle and Rodeo immediately to the north. Mining activity commenced on the property in 1976 and, since 1987, has been operated by Barrick. Franco-Nevada holds NSR (2-4%) and NPI (2.4-6%) royalties at Goldstrike covering the majority of the reported Mineral Reserves and Mineral Resources. These estimates include low grade ore that has been stockpiled. The royalties vary depending on the claim blocks, as shown in the figure. As a result, royalty payments can vary substantially on a quarterly basis, depending on mine sequencing and waste stripping. The timing of capital investments can also impact the timing of the payment of profit royalties.

In the first quarter of 2017, Barrick unified the management and the operation of the Cortez and Goldstrike minesites, now referred to as Barrick Nevada. For 2018, while Barrick Nevada production is expected to decrease from 2017, Goldstrike is expected to have a stronger year due to increased grades from the open pit as well as from the underground operation.

Barrick drilled more than 18,000 meters at Goldstrike in 2017, adding 1.3 million ounces to Mineral Reserves and 1.5 million ounces to the M&I Mineral Resources. This drilling identified a host of high grade extensions to known lodes that will be a focus for further drilling in 2018.

ASSET HIGHLIGHTS:

  • World class gold operation
  • Exploration drilling in 2017 added 1.3 million ounces to Mineral Reserves
  • Profit royalties are more levered to gold prices

2017 2016 2015
Total Revenue to FNV ($ million) $ 16.8 $ 22.9 $ 23.4

Goldstrike