|Operator:||KGHM International Ltd.|
|Royalty:||NSR: 0.225% / other|
|Last Updated:||March 26, 2014|
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:
- a 0.225% NSR on all base metal and associated precious metal production
- a 10% NSR on 51% of the gold production from the property in excess of 60,000 ounces of gold per year; and
- 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, 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). For 2013, ore feed originated primarily from the Liberty pit, which yielded lower head grades than the ore generated from the Ruth West and Ruth East pits 2012. Higher grade ore from the Ruth pit is expected to be delivered to the mill in the second half of 2014.