Gold Offtakes

8 Offtake contracts
6 Project operators
10 Mines

How it works

Offtake contracts are long-volatility, path dependent options that provide “royalty-like” exposure

  • Margins are driven by gold price, volatility and production profile
  • Offtakes allow the holder to purchase a percentage of gold produced by a mine operator. The purchase price is set by reference to certain reference gold prices between a set quotation period (typically 6-8 days)
  • The Offtake holder profits from the difference between the lowest reference price set during the QP and the offtake holder’s onward sale price
  • Gold deliveries continue to ramp up across the portfolio as assets execute expansions and/or production ramp-ups
  • 1.34% realised offtake margin(1) was achieved between 2022 and 2023.

Notes:

  1. Estimated as realised margins divided by average gold price over CY22 and CY23.

Summary of Offtake Key Terms

AssetOperatorLocationStatusQuotation PeriodRoyalty Key Terms
Los FilosEquinox GoldMexicoProducing6 daysOfftake on 50% of all refined gold production, up to cap of 1,100,000 ounces of refined gold
Fazenda, RDM & Santa LuzEquinox GoldBrazilProducing6 daysOfftake on 35% of all refined gold production, up to a cap of 658,333 ounces of refined gold
GreenstoneEquinox GoldCanadaProducing6 days(1)Offtake on 100% of refined gold production, up to cap of 58,500 ounces per year through March 2027. If annual production cap not achieved in 2024-25, then US$23.50/oz on any shortfall
BlyvoorAurous ResourcesSouth AfricaProducing8 daysOfftake on 100% of all refined gold production (after deduction of streamed ounces), up to cap of 2,700,000 ounces of refined gold
BonikroAllied GoldCôte d'IvoireProducing6 daysOfftake on 50% of all refined gold production (after deduction of streamed ounces), no cap
Ruby Hill, McCoy Cove & Granite Creeki-80USAProducing7 daysOfftake on 100% of refined gold production subject to a 40,000 ounce per annum cap until 2028
Sugar ZoneVault Minerals(2)CanadaDevelopment7 daysOfftake on 80% of the gold doré produced at Vault Minerals' Sugar Zone Gold Mine up to 961,250 delivered ounces
EagleVictoria GoldCanadaSuspended(3)7 daysOfftake on 25% of all refined gold production, up to cap of 1,111,500 ounces of refined gold

Notes:

  1. QP is 7 days for CY2024.
  2. Formerly known as Red 5.
  3. On 24 June 2024 Victoria Gold Corp (TSX:VGCX) announced the suspension of Eagle mine operations following a heap leach containment incident.
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