Robinson (Copper) - Nevada
| Royalty: | 0.225% NSR and approx. 20.4% NSR above production and price threshholds |
|---|---|
| 2009 Revenue: | $0.512M |
| Operator: | Quadra Mining Ltd. |
Franco-Nevada has an interest in both the gold and copper production from the Robinson open pit mining complex near Ely, Nevada. The operation and the gold royalty interests are discussed in more detail above under “Gold Assets – Operating - Robinson (Gold)”. Under an agreement purchased from Nerco, Franco-Nevada receives a 0.225% NSR on all production. Under an agreement purchased from Alta, Franco-Nevada is also entitled to 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 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).
On January 11, 2010, Quadra announced that the Robinson Mine produced 122.5 million pounds of copper in 2009 and, therefore, did not meet the copper production threshold required to trigger the copper production payment under the Alta agreement. Quadra reported that 2009 production was negatively impacted by regulatory concerns regarding the geotechnical stability of the north wall of the Veteran Pit, an issue which is now resolved. As of January 2010, Quadra announced its production guidance for 2010 to be 135 million pounds of copper and expects production to be sourced from both supergene and hypogene ores from the Veteran, Wedge and Ruth Pits.