TSX:FNV 99.05 -0.49 -0.49%
Volume 606,413
May 23, 2019
NYSE:FNV 73.50 -0.65 -0.88%
Volume 535,410
May 23, 2019
Gold 1,284.91 +0.41 +0.03%
Volume
May 23, 2019
Contact Share

Franco-Nevada

Goldstrike (Au)

Goldstrike

LOCATION: Nevada, United States
OPERATOR: BARRICK GOLD CORPORATION
ROYALTY: NSR: 2-4% / NPI: 2.4-6%

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, Goldstrike and South Arturo minesites, now referred to as Barrick Nevada. Barrick Nevada produced 2,100,000 ounces in 2018 which is expected to decrease to between 1,750,000 - 1,900,000 ounces in 2019. While Barrick does not break out the guidance of the individual operations, it stated that the main reason for the decrease expected in 2019 was due to the cessation of Cortez Hills open pit operations in the first half of 2019.

ASSET HIGHLIGHTS:

  • World class gold operation
  • Profit royalties are more levered to gold prices

2018 2017 2016
Revenue to FNV ($ million) $ 19.0 $ 16.8 $ 22.9

Goldstrike