Adanac Molybdenum Project (Ruby Creek Molybdenum Deposit) PEA: C$715M NPV, 23.5% IRR
EraNova Metals Corp.'s Adanac Molybdenum Project (Ruby Creek Molybdenum Deposit) in Northwestern 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 11369 klb Mo per year.
EraNova Metals Corp.'s Adanac Molybdenum Project (Ruby Creek Molybdenum Deposit) has reported Preliminary Economic Assessment (PEA) results for the molybdenum project in Northwestern 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, with life-of-mine sustaining capital of C$625M. The study models a payback period of 2.6 years. All-in sustaining costs are pegged at 19.79 CAD/lb. Economics are based on Molybdenum Price (Average): C$34.75/lb (US$25.00/lb); exchange rate USD1.00:CAD1.39.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 24 years. Average annual production is approximately 11369 klb Mo. Average head grade is 0.054% Mo (LOM mill feed grade). Metallurgical recovery averages 90.2%.
Resources and ownership. Mineral resources: Current PEA resource: 93% Measured & Indicated and 7% Inferred mineral resources supporting the mine plan (tonnage/grade not stated in provided text); effective date of Ruby Creek area MRE August 6, 2026. 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.
Our Analysis
- IRR after-tax
- 23.5%
higher than 28% of 383 projects we track
- NPV after-tax
- C$715M
higher than 54% of 556 projects we track
- Initial capex
- C$953M
133% of NPV
costlier than 75% of 521 projects we track
- Payback
- 2.6yrs
slower than 51% of 312 projects we track
- Mine life
- 24yrs
- Discount rate
- 8%
- Study price assumption
- Molybdenum Price (Average): C$34.75/lb (US$25.00/lb); exchange rate USD1.00:CAD1.39
The number that governs this project is not the 23.5% after-tax IRR. It is the C$953M initial capex, a build cost roughly 126.6x the company's entire US$5M market cap. A nano-cap cannot quietly fund a mine of that size: the cheque is far larger than the equity that would be diluted to write it, so the realistic paths are a partner or acquirer carrying the balance, a stream or royalty against future molybdenum output, or equity issuance so heavy that existing holders are left with a minor slice of the asset. Everything else in the study is downstream of that question.
The economics themselves are respectable but not exceptional. The after-tax NPV of C$715M ranks above 54% of the 556 projects we track, and payback of 2.6 years sits mid-pack against 312 peers. The IRR clears the practical financing bar of roughly 15% for project finance and 20%+ for a higher-risk junior with little else to lean on, which is the right comparison here, but it ranks above only 28% of the 383 projects we track. A 24-year mine life in northwestern British Columbia is a genuine positive: a stable, mining-friendly jurisdiction with long-lived infrastructure and permitting precedent.
Confidence in these figures is the other constraint. This is a scoping-level PEA, which may incorporate inferred resources and carries a capital estimate typically accurate to plus or minus 50%. A 50% overrun on C$953M is not a rounding error for a company of this size, and the study's molybdenum assumption of US$25.00/lb (C$34.75/lb at USD1.00:CAD1.39) is the sensitivity that matters most: the returns rest on that figure holding, and any weakness in it lands directly on the NPV and the payback.
The deciding question: can this company secure a partner or buyer to carry a build worth many times its own value without gutting existing shareholders?
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.
Get the next one first
Be the first to know about new mining results, and how they compare to other projects.