Labrador Nickel Royalty Limited Partnership (LNRLP) holds a 3% net value royalty (NVR) on all metals produced from Voisey’s Bay, of which Royal
Gold, Inc.’s wholly-owned indirect subsidiary, International Royalty Corporation, is the general partner and 90%
owner. The remaining 10% interest in LNRLP is owned by a subsidiary of Altius Minerals Corporation.
Royal Gold acquired the Voisey’s Bay royalty, effective February 22, 2010, with the acquisition of International
Royalty Corporation.
On September 13, 2018, LNRLP entered into an agreement with Vale Canada Limited and certain of its subsidiaries
(collectively, the “Parties”) to comprehensively settle long-standing litigation related to calculation of the
royalty on the sale of all concentrates produced from the Voisey’s Bay mine.
The Parties agreed to a new method for calculating the royalty in respect of concentrates processed at Vale’s
Long Harbour Processing Plant (LHPP), which became effective for all Voisey’s Bay mine production after April 1,
2018. Under the terms of the settlement, Royal Gold expects the 3% royalty rate will apply to approximately 50%
of the gross metal value in the concentrates at the nickel, copper and cobalt prices prevailing at the time of
settlement. As those metal prices rise or fall, the percentage of gross metal value in the concentrates
applicable to the royalty correspondingly increases or decreases.
*Detailed information on our interest can be found on
the Portfolio Asset
Summary table