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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 2019 was approximately 81 million pounds while gold production was 36,700 ounces. Franco-Nevada will likely only be paid on the base 0.225% NSR royalty for 2020 as production is expected to be below the royalty threshold level.