Boumadine Polymetallic Project PEA: $1.50B NPV, 47% IRR
Aya Gold & Silver Inc.'s Boumadine Polymetallic Project in Morocco, Province of Errachidia, Anti-Atlas Mountains has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $1.50B, an after-tax IRR of 47%, and initial capital of $446M. The mine plan runs 11 years at about 401 koz AuEq (Y1-Y5) per year.
Aya Gold & Silver Inc.'s Boumadine Polymetallic Project has reported Preliminary Economic Assessment (PEA) results for the silver (polymetallic) project in Morocco, Province of Errachidia, Anti-Atlas Mountains. The study headlines an after-tax net present value of $1.50B at a 5% discount rate. It reflects Aya Gold & Silver Inc.'s (AYA.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.50B using a 5% discount rate. After-tax IRR is 47%. Initial capital expenditure is estimated at $446M. The study models a payback period of 1.3 years. All-in sustaining costs are pegged at 1021 USD/oz AuEq. Economics are based on $2,800/oz gold, $30/oz silver, $1.20/lb zinc, $1.00/lb lead.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 11 years. Average annual production is approximately 401 koz AuEq (Y1-Y5).
Resources and ownership. Mineral resources: M&I: 74 Moz AgEq @ 448 g/t AgEq; Inferred: 378 Moz AgEq @ 402 g/t AgEq. Royalties and streams: 3% royalties; mining tax of 3 MAD/t.
These figures are extracted from Aya Gold & Silver 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.
Our Analysis
- IRR after-tax
- 47%
higher than 75% of 332 projects we track
- NPV after-tax
- $1.50B
higher than 79% of 430 projects we track
- Initial capex
- $446M
30% of NPV
costlier than 62% of 429 projects we track
- Payback
- 1.3yrs
slower than 16% of 268 projects we track
- Mine life
- 11yrs
- Discount rate
- 5%
- Study price assumption
- $2,800/oz gold, $30/oz silver, $1.20/lb zinc, $1.00/lb lead
- Spot silver today
- $67.16/oz
The outlier here is the combination of a 47% after-tax IRR and a $446M build cost that is only 0.1x the company's market cap. That pairing is rare: most projects with top-quartile returns carry either a hefty price tag or meaningful execution risk. Here, the payback of 1.3 years and an NPV of $1.50B that ranks above 79% of tracked projects reinforce the screen. The financing question largely evaporates, since a mid-cap with a US$3.95B market cap can absorb this build without existential dilution.
The catch is durability and precision. An 11-year mine life is not a generational asset, and this is a PEA, scoping-level work where the capital estimate carries a plus or minus 50% band. The study assumes $30/oz silver against a live spot of $67.16/oz, so the headline economics are not leaning on a heroic metal price; if anything, the current silver price suggests substantial upside to the modeled case. But the project is polymetallic, and the returns also rest on $2,800/oz gold, $1.20/lb zinc, and $1.00/lb lead assumptions that are not all equally generous today. The 5% discount rate sits at the low end of reporting convention, which flatters the NPV, though it does not change the underlying payback speed.
Morocco's Anti-Atlas region is a known mining jurisdiction, but it is not a low-risk Western venue, and the project remains at the preliminary stage where resource confidence and metallurgical behavior are unproven. The single question that decides whether this works is whether the PEA's grade and recovery assumptions survive a feasibility study; if they do, the small capex and fast payback make this a straightforward build. If they do not, the 47% IRR compresses quickly, and the market's current valuation, at roughly 0.4x NPV, may already reflect that skepticism rather than an underpricing.
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.