Abitibi Royalties (RZZ.V) has released an updated guidance based on the most recent resource and reserve estimate provided by the Canadian Malartic Mine, a joint venture of Agnico Eagle Mines (AEM, AEM.TO) and Yamana Gold (AUY, YRI.TO). Abitibi Royalties owns a Net Smelter Royalty on certain portions of the Canadian Malartic gold mine.

Abitibi Royalties owns a 3% NSR on the 75,000 ounces of gold in the Barnat zone but more importantly, it also owns a 3% NSR on other zones as well. The total resources in the areas where Abitibi Royalties has a 3% NSR interest in came in at 344,000 ounces of gold in the measured and indicated resources while an additional 4.25 million ounces of gold were classified as an inferred resource. An additional 66,000 ounces were found at Gouldie, where Abitibi has a 2% NSR.

The updated resource estimate and mine plan allowed Abitibi to provide a guidance for 2021 and beyond. The total gold production from the Barnat open pit is estimated to be 10,550 ounces of gold this year, and Abitibi has a 3% NSR on these ounces. The amount of recovered ounces will increase in 2022 to an expected 14,600 ounces of gold, but 2023 will be a major boost for Abitibi as the company will see a considerable production increase on the areas where it owns a Net Smelter Royalty on.

Disclosure: The author has no position in Abitibi Royalties. Please read our disclaimer.

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