Auld Creek (Reefton Goldfield) PEA: $42M NPV, 17% IRR
Rua Gold Inc.'s Auld Creek (Reefton Goldfield) in New Zealand, Reefton Goldfield has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $42M, an after-tax IRR of 17%, and initial capital of $133M. The mine plan runs 5.5 years at about 26665 AuEq oz/yr per year.
Rua Gold Inc.'s Auld Creek (Reefton Goldfield) has reported Preliminary Economic Assessment (PEA) results for the gold, antimony project in New Zealand, Reefton Goldfield. The study headlines an after-tax net present value of $42M at a 5% discount rate. It reflects Rua Gold Inc.'s (RUA.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $42M using a 5% discount rate. After-tax IRR is 17%. Initial capital expenditure is estimated at $133M. The study models a payback period of 3.3 years. All-in sustaining costs are pegged at 1850 USD/oz. Economics are based on Gold US$3,300/oz (base case), Antimony US$27,000/t (base case); spot case: Gold US$4,700/oz.
Production and mine plan. The project envisions an underground operation. Life of mine is 5.5 years. Average annual production is approximately 26665 AuEq oz/yr. Average head grade is 3.36 AuEq g/t. Metallurgical recovery averages 85%.
These figures are extracted from Rua Gold Inc.'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 |
|---|---|---|---|
| Indicated | — | 5.7 AuEq g/t | 54koz |
| Inferred | — | 3.7 AuEq g/t | 148koz |
Our Analysis
At 17% after-tax IRR, the project ranks in the bottom quartile of the 293 all commodities projects we track, and clears the ~15% after-tax return developers typically need to finance a build. The study discounts at 5%, the low end of the reporting convention, which flatters the headline NPV. Initial capital runs to about 313% of project NPV, making it capital-intensive; funding that build is the central execution risk. A modelled payback of 3.3 years is moderate for a project of this type. The project is located in New Zealand, Reefton Goldfield, 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.