Buenavista del Cobre (BVC) PFS: $3.70B NPV, $5.30B Capex
Southern Copper Corporation's Buenavista del Cobre (BVC) in Mexico has a Pre-Feasibility Study (PFS) outlining a pre-tax NPV of $3.70B and initial capital of $5.30B. The proposed mine plan runs 30 years.
Southern Copper Corporation's Buenavista del Cobre (BVC) has reported Pre-Feasibility Study (PFS) results for the copper project in Mexico. The study headlines a pre-tax net present value of $3.70B at a 8% discount rate. It reflects Southern Copper Corporation's (SCCO) latest disclosed economics for the asset.
Economics. The pre-tax NPV is $3.70B using a 8% discount rate. Initial capital expenditure is estimated at $5.30B. Economics are based on Copper at US$3.30/lb, Molybdenum at US$10.00/lb, Zinc at US$1.15/lb.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 30 years. The open-pit strip ratio is 2.10.
Resources and ownership. The company holds a 99.95% interest in the project.
These figures are extracted from Southern Copper Corporation'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 |
|---|---|---|---|
| Probable (Sulfide ROM Ore - Cu Plant) | 2,104 Mt | 0.36% Cu, 0.007% Mo | 16,881 Mlb Cu, 343 Mlb Mo |
| Probable (Sulfide ROM Ore - Zn Plant) | 68 Mt | 0.36% Cu, 1.40% Zn | 531 Mlb Cu, 2,097 Mlb Zn |
| Probable (Sulfide ROM Ore - Total) | 2,172 Mt | 0.36% Cu | 17,412 Mlb Cu, 343 Mlb Mo, 2,097 Mlb Zn |
| Probable (Leachable Ore) | 1,126 Mt | 0.22% Cu | 5,506 Mlb Cu |
| Probable (Total Material) | 6,599 Mt | — | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 944 Mt | 0.38% Cu, 0.005% Mo, 0.07% Zn | 3,580 kt Cu, 51 kt Mo, 657 kt Zn |
| Measured + Indicated | 944 Mt | 0.38% Cu, 0.005% Mo, 0.07% Zn | 3,580 kt Cu, 51 kt Mo, 657 kt Zn |
| Inferred | 14,467 Mt | 0.21% Cu, 0.004% Mo, 0.03% Zn | 30,442 kt Cu, 590 kt Mo, 4,305 kt Zn |
| Indicated (Plant Zn) | 183 Mt | 0.46% Cu, 0.002% Mo, 0.78% Zn | 847 kt Cu, 3 kt Mo, 1,419 kt Zn |
| Measured + Indicated (Plant Zn) | 183 Mt | 0.46% Cu, 0.002% Mo, 0.78% Zn | 847 kt Cu, 3 kt Mo, 1,419 kt Zn |
| Inferred (Plant Zn) | 194 Mt | 0.43% Cu, 0.003% Mo, 0.49% Zn | 830 kt Cu, 6 kt Mo, 953 kt Zn |
| Indicated (Leach) | 82 Mt | 0.13% Cu | 104 kt Cu |
| Measured + Indicated (Leach) | 82 Mt | 0.13% Cu | 104 kt Cu |
| Inferred (Leach) | 3,812 Mt | 0.14% Cu | 5,398 kt Cu |
Our Analysis
- NPV pre-tax
- $3.70B
higher than 94% of 31 projects we track
- Initial capex
- $5.30B
143% of NPV
costlier than 97% of 35 projects we track
- Mine life
- 30yrs
- Study price assumption
- Copper at US$3.30/lb, Molybdenum at US$10.00/lb, Zinc at US$1.15/lb
- Spot copper today
- $6.52/lb
The project sits in an unusual spot within our tracked universe: an NPV that ranks above 94% of the 31 copper projects we follow, yet a capital cost that is more capital-intensive than 97% of the 35 projects in that peer set. That combination is not contradictory, but it is telling. High absolute value with heavy upfront spending means the returns are real but back-loaded, and the ranking tells an investor less about quality than about scale. The project is large, not exceptional, and the PFS stage (roughly a plus or minus 25% band) means those figures carry more uncertainty than a feasibility study would.
The constraint that matters most is funding, and here the picture flips. Initial capex of $5.30B is 143% of NPV, a genuinely capital-intensive build. But against the company's US$145.05B market cap, that same build cost is small, and this is one of a dozen projects we track for this diversified large-cap. A build cost that would strain a mid-tier is a rounding error here. That is the sharpest funding-risk signal available: the company can absorb this without dilution or distress, which removes the most common reason projects with this capital intensity fail to reach production.
The study's copper price assumption of US$3.30/lb sits far below today's spot of $6.52/lb, so the stated returns are conservative on the commodity side, though the 30-year mine life means the long-run price matters more than the current spike. Mexico is a mining-friendly jurisdiction with established copper infrastructure, which supports the production-stage designation. The single question that decides whether this works is whether the company's diversified portfolio actually prioritizes this build over its other tracked projects; capital availability is not the issue, capital allocation is.
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.