Berg Copper Project PFS: C$4.59B NPV, 23.79% IRR
Surge Copper Corp.'s Berg Copper Project in British Columbia, Canada has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of C$4.59B, an after-tax IRR of 23.79%, and initial capital of C$4.68B. The mine plan runs 27.7 years at about 43699 kt/a mined resource per year.
Surge Copper Corp.'s Berg Copper Project has reported Pre-Feasibility Study (PFS) results for the copper project in British Columbia, Canada. The study headlines an after-tax net present value of C$4.59B at a 8% discount rate. It reflects Surge Copper Corp.'s (SURG.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$4.59B using a 8% discount rate. After-tax IRR is 23.79%. Initial capital expenditure is estimated at C$4.68B, with life-of-mine sustaining capital of C$1.73B. The study models a payback period of 2.9 years. Economics are based on Cu US$4.75/lb, Mo US$20.00/lb, Ag US$45.00/oz, Au US$3,500.00/oz; FX 0.73 CAD:USD.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 27.7 years. Average annual production is approximately 43699 kt/a mined resource. Average head grade is 0.22% Cu, 0.03% Mo, 4.11 g/t Ag, 0.02 g/t Au. The open-pit strip ratio is 1.99:1.
Resources and ownership. Royalties and streams: 1.0% royalty; Annual average royalties C$18.1M.
These figures are extracted from Surge Copper Corp.'s technical disclosures and reflect the most recent PFS 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 |
|---|---|---|---|
| Proven | 35 Mt | 0.30% Cu, 0.033% Mo, 4.8 g/t Ag, 0.03 g/t Au | 231 Mlbs Cu, 25 Mlbs Mo, 5 Moz Ag, 34 koz Au |
| Probable | 1,174 Mt | 0.21% Cu, 0.026% Mo, 4.1 g/t Ag, 0.02 g/t Au | 5,565 Mlbs Cu, 662 Mlbs Mo, 154 Moz Ag, 810 koz Au |
| Proven & Probable | 1,209 Mt | 0.22% Cu, 0.026% Mo, 4.1 g/t Ag, 0.02 g/t Au | 5,796 Mlbs Cu, 687 Mlbs Mo, 160 Moz Ag, 844 koz Au |
Our Analysis
A 23.8% after-tax IRR places this project in the upper half of the 26 copper peers we track and comfortably clears the practical financing hurdle for a single-asset developer. The NPV of C$4.59B is 26.6x the company’s market cap, which can be read two ways: either the market has not yet priced in the asset’s value, or it is discounting significant financing, permitting, or execution risk. The 8% discount rate used to compute that NPV is low by convention, which flatters the headline number—a higher rate would compress the NPV materially.
Capital intensity is a clear watch-item: initial capex of C$4.68B is 102% of NPV and dwarfs the market cap, meaning equity dilution or heavy debt will be required to fund development. The 2.9-year payback is moderate, but the 27.7-year mine life supports long-term cash flow. British Columbia is a mining-friendly jurisdiction, though permitting timelines and local stakeholder engagement remain execution risks. The study’s copper price assumption of US$4.75/lb sits well below the current live spot of US$6.36/lb, implying upside to returns if prices hold—but the single most important risk is whether the company can finance and build a C$4.68B project given its current market capitalization.
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.