Adanac Molybdenum Project PEA: C$715M NPV, 23.5% IRR
EraNova Metals Corp.'s Adanac Molybdenum Project in Atlin, British Columbia, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$715M, an after-tax IRR of 23.5%, and initial capital of C$953M. The mine plan runs 24 years at about 11.4 Mlb Mo per year.
EraNova Metals Corp.'s Adanac Molybdenum Project has reported Preliminary Economic Assessment (PEA) results for the molybdenum project in Atlin, British Columbia, Canada. The study headlines an after-tax net present value of C$715M at a 8% discount rate. It reflects EraNova Metals Corp.'s (NOVA.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$715M using a 8% discount rate. After-tax IRR is 23.5%. Initial capital expenditure is estimated at C$953M. The study models a payback period of 2.4 years. All-in sustaining costs are pegged at 19.79 CAD/lb Mo. Economics are based on Base case US$25/lb Mo; spot case ~US$31.91/lb Mo; resource estimate uses long-term US$23/lb Mo.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 24 years. Average annual production is approximately 11.4 Mlb Mo. Average head grade is 0.051% Mo (M&I). The open-pit strip ratio is 0.7:1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from EraNova Metals Corp.'s technical disclosures and reflect the most recent PEA on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 39 Mt | 0.072% Mo | 61.7 Mlbs |
| Indicated | 352.2 Mt | 0.048% Mo | 374.1 Mlbs |
| Measured & Indicated | 391.2 Mt | 0.051% Mo | 435.7 Mlbs |
| Inferred | 76.4 Mt | 0.042% Mo | 71 Mlbs |
Our Analysis
- IRR after-tax
- 23.5%
higher than 30% of 400 projects we track
- NPV after-tax
- C$715M
higher than 53% of 574 projects we track
- Initial capex
- C$953M
133% of NPV
costlier than 74% of 541 projects we track
- Payback
- 2.4yrs
slower than 41% of 328 projects we track
- Mine life
- 24yrs
- Discount rate
- 8%
- Study price assumption
- Base case US$25/lb Mo; spot case ~US$31.91/lb Mo; resource estimate uses long-term US$23/lb Mo
Initial capital of C$953M is several times the company's market capitalisation of about US$5M, which frames the financing and dilution risk. At 23.5% after-tax IRR, the project ranks higher than 30% of the 400 projects we track across all commodities, and clears the ~15% after-tax return developers typically need to finance a build. Capital runs to about 133% of project NPV, making it capital-intensive, lower than 26% of the 541 projects we track across all commodities. It is one of 11 projects we track for this company, a diversified portfolio, a nano-cap developer. These are scoping-level numbers: a PEA is preliminary, may include inferred resources, and its capital estimate typically carries a plus or minus 50% band. The project sits in Atlin, British Columbia, Canada, a factor in its overall risk profile.
Our take, benchmarked against the project economics in the Mining Stocks database. Figures are estimates drawn from company technical reports — not investment advice; always verify against the source filing.
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