First Quantum Minerals Ltd. (TSX:FM) announced today that they have entered in a gold streaming agreement with RGLD Gold AG, a 100% owned subsidiary of Royal Gold, Inc. The agreement provides First Quantum with a $1B upfront cash payment in return for gold deliveries from the Kansanshi Mine in Zambia.
The transaction will provide First Quantum with long-term, unsecured, non-debt capital. Proceeds are immediately planned for use towards the payment of capital expenditure, general working capital requirements, and bank loan repayment. A cash payment of $1B will be paid out to First Quantum on 6 August 2025 and the company will then deliver ounces of gold commensurate with copper production at Kansanshi to Royal Gold, following the terms below:
- 75 ounces of gold per million pounds of recovered copper produced until 425,000 ounces of gold are delivered
- 55 ounces of gold per million pounds of recovered copper produced until an additional 225,000 ounces of gold are delivered
- 45 ounces of gold per million pounds of recovered copper produced thereafter
The transaction also allows First Quantum to maintain full exposure to the copper production at Kansanshi, while also giving them the ability to increase gold exposure over time.
“Following a thorough evaluation of several deleveraging options, I am pleased to announce this milestone transaction which preserves exposure to all of the copper production at Kansanshi while still maintaining exposure to the majority of the Company’s gold production. Today’s announcement further enhances the Company’s financial resilience, while the ramp-up of the S3 Expansion at Kansanshi and a resolution in Panama will continue to strengthen our financial position,” Tristan Pascall, CEO of First Quantum, commented. “It is pleasing to form a new partnership with Royal Gold which is a strong endorsement of the operations at Kansanshi and its multi-generational ore body as well as Zambia as a leading African mining jurisdiction.”
