2. STREAM AND ROYALTY INTERESTS, NET

The following tables summarize the Company’s stream and royalty interests, net as of March 31, 2018 and June 30, 2017.


As of March 31, 2018 (Amounts in thousands):	Cost		Accumulated Depletion		Impairments		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(143,370)	$	—	$	647,265
Pueblo Viejo		610,404		(101,193)		—		509,211
Andacollo		388,182		(53,916)		—		334,266
Wassa and Prestea		146,475		(39,383)		—		107,092
Rainy River		175,727		(2,354)		—		173,373
Total production stage stream interests		2,111,423		(340,216)		—		1,771,207
Production stage royalty interests:
Voisey's Bay		205,724		(85,671)		—		120,053
Peñasquito		99,172		(37,636)		—		61,536
Holt		34,612		(20,868)		—		13,744
Cortez		20,878		(11,230)		—		9,648
Other		483,795		(357,918)		—		125,877
Total production stage royalty interests		844,181		(513,323)		—		330,858
Total production stage stream and royalty interests		2,955,604		(853,539)		—		2,102,065

Development stage stream interests:
Other		12,038		—		—		12,038

Development stage royalty interests:
Cortez		59,803		—		—		59,803
Other		63,810		—		(284)		63,526
Total development stage royalty interests		123,613		—		(284)		123,329
Total development stage stream and royalty interests		135,651		—		(284)		135,367

Exploration stage royalty interests:
Pascua-Lama		416,770		—		(239,080)		177,690
Other		117,481		—		-		117,481
Total exploration stage royalty interests		534,251		—		(239,080)		295,171
Total stream and royalty interests, net	$	3,625,506	$	(853,539)	$	(239,364)	$	2,532,603


As of June 30, 2017 (Amounts in thousands):	Cost		Accumulated Depletion		Impairments		Net
Production stage stream interests:
Mount Milligan	$	790,635	$	(114,327)	$	—	$	676,308
Pueblo Viejo		610,404		(67,149)		—		543,255
Andacollo		388,182		(39,404)		—		348,778
Wassa and Prestea		146,475		(22,715)		—		123,760
Total production stage stream interests		1,935,696		(243,595)		—		1,692,101
Production stage royalty interests:
Voisey's Bay		205,724		(85,671)		—		120,053
Peñasquito		99,172		(34,713)		—		64,459
Holt		34,612		(19,669)		—		14,943
Cortez		20,873		(10,633)		—		10,240
Other		483,643		(337,958)		—		145,685
Total production stage royalty interests		844,024		(488,644)		—		355,380
Total production stage stream and royalty interests		2,779,720		(732,239)		—		2,047,481
Development stage stream interests:
Rainy River		175,727		—		—		175,727
Other		12,031		—		—		12,031
Total development stage stream interests		187,758		—		—		187,758
Development stage royalty interests:
Cortez		59,803		—		—		59,803
Other		63,811		—		—		63,811
Total development stage royalty interests		123,614		—		—		123,614
Total development stage stream and royalty interests		311,372		—		—		311,372

Exploration stage royalty interests:
Pascua-Lama		416,770		—		—		416,770
Other		116,633						116,633
Total exploration stage royalty interests		533,403		—		—		533,403
Total stream and royalty interests, net	$	3,624,495	$	(732,239)	$	—	$	2,892,256

Impairment of royalty interests

In accordance with our impairment accounting policy discussed in Note 1, impairments in the carrying value of each stream or royalty interest are measured and recorded to the extent that the carrying value in each stream or royalty interest exceeds its estimated fair value, which is generally calculated using estimated future discounted cash-flows. As part of the Company’s regular asset impairment analysis, which included the presence of impairment indicators, the Company recorded impairment charges for the three and nine months ended March 31, 2018 and 2017, as summarized in the following table:



	Three Months Ended				Nine Months Ended
	March 31,		March 31,		March 31,		March 31,
	2018		2017		2018		2017
		(Amounts in thousands)				(Amounts in thousands)
Pascua-Lama	$	239,080	$	—	$	239,080	$	—
Other		284		—		284		—
Total impairment of royalty interests	$	239,364	$	—	$	239,364	$	—

Pascua-Lama

We own a 0.78% to 5.45% sliding‑scale net smelter return (“NSR”) royalty on the Pascua‑Lama project, which straddles the border between Argentina and Chile, and is owned by Barrick Gold Corporation (“Barrick”). The Company owns an additional royalty equivalent to 1.09% of proceeds from copper produced from the Chilean portion of the project, net of allowable deductions, sold on or after January 1, 2017. Our royalty interests are applicable to all gold and copper production from the portion of the Pascua-Lama project lying on the Chilean side of the border.

On January 18, 2018 Barrick reported that it is analyzing a revised sanction related to the Pascua-Lama project issued by Chile’s Superintendencia del Medio Ambiente (“SMA”) on January 17, 2018. The sanction is part of a re-evaluation process ordered by Chile’s Environmental Court in 2014 and relates to historical compliance matters at the Pascua-Lama project. According to Barrick, the SMA has not revoked Pascua-Lama’s environmental permit, but has ordered the closure of existing facilities on the Chilean side of the project, in addition to certain monitoring activities.

On February 6, 2018, in light of the SMA order to close surface facilities in Chile, and earlier plans to evaluate an underground mine, Barrick announced it reclassified Pascua-Lama’s proven and probable reserves, which are based on an open pit mine plan, as mineralized material. Barrick reported further details in its year-end results on February 14, 2018 and an update on the Pascua-Lama project at its February 22, 2018 Investor Day. A significant reduction in reserves or mineralized material are indicators of impairment.

On April 23, 2018, Barrick announced that work performed to-date on the prefeasibility study for a potential underground project has been suspended, and they will focus on adjusting the project closure plan for surface infrastructure on the Chilean side of the project. Barrick will continue to evaluate opportunities to de-risk the project while maintaining Pascua-Lama as an option for development in the future if economics improve and related risks can be mitigated.

As part of the impairment determination, the fair value for Pascua-Lama was estimated by calculating the net present value of the estimated future cash-flows, subject to our royalty interest, expected to be generated by the mining of the Pascua-Lama deposits. The Company applied a probability factor to its fair value calculation that Barrick will either proceed with an open-pit mine or an underground mine at Pascua. The estimates of future cash flows were derived from open-pit and underground mine models developed by the Company using various information reported by Barrick. The metal price assumptions used in the Company’s model were supported by consensus price estimates obtained by a number of industry analysts. The future cash flows were discounted using a discount rate which reflects specific market risk factors the Company associates with the Pascua-Lama royalty interest. Following the impairment charge during the three months ended March 31, 2018, the Pascua-Lama royalty interest has a remaining carrying value of $177.7 million as of March 31, 2018.