Boumadine Polymetallic Project PEA: $3.50B NPV, 93% IRR
Aya Gold & Silver Inc.'s Boumadine Polymetallic Project in Morocco (Province of Errachidia, Anti-Atlas) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $3.50B, an after-tax IRR of 93%, and initial capital of $463M. The mine plan runs 14 years at about 271 koz AuEq (LOM average; 348 koz AuEq Y1-Y5) per year.
Aya Gold & Silver Inc.'s Boumadine Polymetallic Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Morocco (Province of Errachidia, Anti-Atlas). The study headlines an after-tax net present value of $3.50B 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 $3.50B using a 5% discount rate. After-tax IRR is 93%. Initial capital expenditure is estimated at $463M. The study models a payback period of 0.7 years. All-in sustaining costs are pegged at 1300 USD/oz AuEq (LOM; $1,105/oz Y1-Y5). Economics are based on $3,500/oz gold, $50.00/oz silver, US$1.37/lb Zn, US$0.90/lb Pb.
Production and mine plan. The project envisions an open pit and underground operation. Life of mine is 14 years. Average annual production is approximately 271 koz AuEq (LOM average; 348 koz AuEq Y1-Y5). Average head grade is 3.10 g/t AuEq (LOM); 4.11 g/t AuEq (Y1-Y5).
Resources and ownership. The company holds a 85% interest in the project. Royalties and streams: 15% ONHYM (state) interest.
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
- 93%
higher than 91% of 118 projects we track
- NPV after-tax
- $3.50B
higher than 98% of 187 projects we track
- Initial capex
- $463M
13% of NPV
costlier than 73% of 172 projects we track
- Payback
- 0.7yrs
slower than 3% of 101 projects we track
- Mine life
- 14yrs
- Discount rate
- 5%
- Study price assumption
- $3,500/oz gold, $50.00/oz silver, US$1.37/lb Zn, US$0.90/lb Pb
- Spot gold today
- $4,155.30/oz
The revised study for this Moroccan gold asset is a story of a project that has been re-engineered upward, and the scale of the revision is the point. Against the previous filing, after-tax NPV is up 133%, mine life is up 27% to 14 years, and after-tax IRR has added 46 points. That is not a tweak to a model; it is a materially different asset, and the extended mine life matters as much as the NPV jump, because durability is what carries a development project through financing and construction.
The current numbers are strong on their face. After-tax NPV of $3.50B ranks above 98% of the 187 gold projects we track, the 93% after-tax IRR sits in the top decile of 118 peers, and payback of 0.7 years is faster than 97% of 101 peers. The IRR clears the roughly 15% after-tax threshold developers typically need for project finance by a wide margin. Funding risk looks modest: initial capex of $463M is about 0.1x the company's US$4.11B market cap, and NPV is roughly in line with market cap at about 0.9x. This is one of three projects we track for the company, so the build does not rest on a single-asset balance sheet.
Two caveats temper the read. This is a scoping-level PEA, preliminary in nature, potentially including inferred resources, with a capital estimate that typically carries a plus or minus 50% band. And the study assumes $3,500/oz gold against a live spot of $4,155.30/oz, so the economics rest on a price below today's market rather than above it. The question that decides this project is whether the PEA's capital and recovery assumptions survive the step up to feasibility.
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.