TSX:FNV 117.86 +1.10 +0.94%
Volume 739,207
July 19, 2019
NYSE:FNV 90.22 +0.64 +0.71%
Volume 724,583
July 19, 2019
Gold 1,425.90 -20.27 -1.4%
Volume
July 19, 2019
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Franco-Nevada

Robinson (Cu, Au)

Location: Nevada, United States
Operator: Kghm International Ltd.
Royalty: NSR: 0.225% / other

The Robinson open pit mining complex, operated by KGHM produces copper, gold and molybdenum and is located near Ely, Nevada. Franco-Nevada has three royalties covering the Robinson mine: 1) a 0.225% NSR on all base metal and associated precious metal production; 2) a 10% NSR on 51% of the gold production from the property in excess of 60,000 ounces of gold per year; and 3) under a copper agreement, a price participation royalty on 51% of 40% of each pound of copper production from the property in excess of 130 million pounds of copper produced per annum, multiplied by the spot price, less $1.00 per pound adjusted for inflation (based on 1990 dollars). Amounts are only payable in any year in which the average price of copper during that year exceeds a $1 per pound threshold, as adjusted for inflation (based on 1990 dollars). Copper production for the first nine months of 2018 was ~82 million pounds while gold production was 28,800 ounces. Despite the increases for 2018 compared to 2017, production is expected to be substantially below the royalty threshold level and thus Franco-Nevada will likely only be paid on the base 0.225% NSR royalty for 2018.