Royalty Holder……………..AngloGold
Revenue……………..…..………………..n.a.
Mine Life...………………………………..n.a.
Commodity…………………………….Gold
Operator…………….Newmont Mining

#3 Cripple Creek

AngloGold sold its Cripple Creek gold mine in the US to Newmont in June for $820m, but held onto a 2.5 per cent royalty.

The mine is due to produce over 350,000 gold ounces next year, but the royalty only covers underground ore, making its value dependent on a major expansion by Newmont. Cripple Creek had underground workings until the 1980s and AngloGold probed the possibility of reopening an underground operation, shortly before selling the mine earlier this year.

The royalty it has carved-out suggests it believes the plan is viable and the asset would be an easy target for gold royalty groups. Franco-Nevada bought nine separate royalties off AngloGold for a total of $22m last year and Cripple Creek fits Franco's model of rolling-up claims over acreage where leading operators have already sunk capital.

 

 

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