Franco-Nevada sign $610m silver streaming deal

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Franco-Nevada sign $610m silver streaming deal

Franco-Nevada has agreed to acquire a silver stream on production from the Compania Miñera Antamina (CMA) owned Antamina copper mine in Peru as part of a $610m deal with Teck Resources.

Teck owns a 22.50% interest in CMA, along with partners BHP Billiton (33.75%), Glencore (33.75%) and Mitsubishi (10%).

Franco-Nevada president and CEO David Harquail said: “Franco-Nevada is pleased to partner with Teck on the Antamina mine to create our first pure silver stream.

“This further strengthens and diversifies our portfolio with a proven, long-life, high-margin asset that will be immediately accretive.”

Antamina began operations in 2001, and contains total measured and indicated resources of 1.1 billion tonnes of ore and inferred resources of 1.3 billion tonnes of ore.

The Antamina partners have invested more than $6.5bn to date in constructing and expanding the mine, as well as infrastructure.

The mine’s first silver delivery is expected in the fourth quarter.

“Franco-Nevada is expected to receive between 900,000oz and 1,100,000oz of silver during the initial quarter.”

Upon completion, Franco-Nevada is expected to receive between 900,000oz and 1,100,000oz of silver during the initial quarter.

Total reserves at Antamina mine are 647 million tonnes of ore, which are currently constrained by tailings disposal capacity.

CMA is currently considering options for storing additional tailings and alternative mine plans that could result in significant mine life extensions.

Antamina mine is an open pit operation processing about 150,000t per day using conventional flotation, located in the Peruvian Andes 270km north-east of Lima.

In 2014, the mine produced approximately 345,000t of copper, 211,000t of zinc, 3.1 million pounds of molybdenum, and 12 million ounces of silver.

Source and Link: Mining Technology

Moving Abroad Checklist

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Will your partner be travelling with you?

If so, what will they be giving up in your present home and will they be able to continue with their career in your new home? You will need to check whether a separate visa is required for your partner to work or if your visa gives that right. If they are unable to work you will need to decide on the effect on your finances and what alternatives are available to give a fulfilling life (home business, training, voluntary work).

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Moving with family raises many exciting opportunities, but also can create challenges. The HSBC Expat Explorer survey indicates that expat kids can take six months to settle in to their new country (see article). Getting young or even older children to prepare to move and leave their friends and family behind can be a challenge and should be thought through.

The options for education is another area that needs to be thought through.

Moving your child to a new country with a different education system can be a great opportunity to broaden their experience, but if they are close to key exams the timing can make this inadvisable. If you do take your family with you, it is important to decide between joining the local school system or choosing an international school.

Where will you be living?

Whether you will be living in a house or apartment, furnished or unfurnished, these decisions will affect what you need to take with you. The time you are planning to live overseas will also affect whether you should leave your property at home empty, rent it out or sell it. See the article Sell, Store or Ship.