Franco-Nevada

In August 2012, Franco-Nevada partnered with Inmet Mining to invest $1 billion in various metal streams from the Cobre Panama Copper Project.[10] In 2013, First Quantum Minerals took over Inmet Mining. At the end of January 2018, the subsidiary Franco-Nevada (Barbados) acquired an additional precious metals stream on Korea Resources Corporation’s interest in Cobre Panama and provided a second tranche of funding to First Quantum to assist it with acquiring a further 10% interest in the project. After this transaction, FNB has precious metal stream interests covering 100% of the ownership of Cobre Panama.[11] FNB has funded a total of $1.356 billion funding commitment of the more than $6 billion capital cost for the project.[12] In June 2019, Cobre Panama started shipping ore concentrate. An announcement of a Panamanian Supreme Court ruling in connection to the constitutionality of Law 9 of 1997 is raising questions concerning Minera Panama S. A.., the holder of the Cobre Panama concession.[13] In April 2019, First Quantum indicated its plan to invest a further US$327 million to expand Cobre Panama’s throughput from 85 Mtpa to 100 Mtpa starting in 2023.[14]

In January 2022, negotiations between the Government of Panama and First Quantum Minerals started to define a new contract concerning the Cobre Panama mine.[15] First Quantums subsidiary Minera Panamá S. A. made proposals favorable to the Government of Panamá including yearly payments of US$375 million in tax and royalty revenue. These payments were offered under the conditions that metal prices and profitability of this mine would not drop significantly. However, the Government of Panamá halted discussions in December 2022 and announced plans to order suspension of operations at this mine.[16] After a closure of the mine during two weeks, operations resumed and the terms and conditions of a refreshed concession contract between Minera Panamá S. A. and the Government of Panama have been announced on March 8, 2023. This contract will be presented to the Parliament of Panama for approval in July 2023.[17]

In October 2014, Lundin Mining agreed to acquire an 80% interest in the Candelaria mining complex in the Atacama Region of Chile from Freeport-McMoRan for $1.8 billion. To help fund the acquisition cost, Franco-Nevada paid $648 million to acquire a gold and silver stream on the Candelaria mine.[18]

At the time, the mine had reserves supporting a 14 year mine life. Lundin Mining had great exploration success expanding the underground extensions of the orebody and in its reserve update in September 2020 stated reserves supporting a 25 year mine life.[19]

In October 2015, Franco-Nevada agreed to pay Teck Resources US$610 million for a stream on Teck’s 22.5% share of the silver production on the giant Antamina mine in Peru. Teck owns its stake in Antamina along with BHP, Glencore and Mitsubishi Corp. Antamina is the world’s eighth-largest copper mine. A possible future underground expansion at Antamina could extend the mine life beyond 40 years.[20]

In February 2016, Franco-Nevada (Barbados) acquired a gold and silver steam related to the Antapaccay mine in Peru from Glencore for $500 million. The deal was part of a $10 billion debt reduction plan announced by Glencore in September 2015. Glencore invested more than $1.5 billion to build and commission the Antapaccay open-pit mine and plant, which started operations in 2012.[21] Glencore received approval from Peruvian authorities in January 2020 for the development of the Coroccohuayco project on the Antapaccay property. The integrated project would have a 34 year life.[22]

In August 2018, Franco-Nevada and Continental Resources entered into a strategic relationship to jointly acquire royalty rights in the SCOOP and STACK oil and gas plays of Oklahoma. Franco-Nevada committed $520 million to the venture to be invested through 2021. The venture was established to acquire royalty rights at the grass-roots level in areas primarily within acreage operated by Continental.[23]

In April 2021, Franco-Nevada acquired 57 million Royalty Debentures for $538 million from the Brazilian Development Bank and the Federal government of Brazil, representing 14.7% of the total issued Royalty Debentures. The Royalty Debentures provide holders with life of mine net sales royalties on Vale's Northern Iron Ore system, Southeastern Iron Ore system and on certain copper and gold operations. Franco-Nevada also accumulated a 9.9% equity investment in Labrador Iron Ore Royalty Corporation, acquired over a number of years for a total investment of C$93 million. The mines associated with both investments produce high grade Iron ore products that allow steelmakers to reduce C02 and other emissions from their operations.[24]