Cabaçal PFS: $984M NPV, 61% IRR
Meridian Mining UK Societas's Cabaçal in Brazil, Mato Grosso has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $984M, an after-tax IRR of 61%, and initial capital of $248M. The mine plan runs 10.6 years at about 141000 oz AuEq pa per year.
Meridian Mining UK Societas's Cabaçal has reported Pre-Feasibility Study (PFS) results for the gold-copper project in Brazil, Mato Grosso. The study headlines an after-tax net present value of $984M at a 5% discount rate. It reflects Meridian Mining UK Societas's (MNO.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $984M using a 5% discount rate. After-tax IRR is 61%. Initial capital expenditure is estimated at $248M, with life-of-mine sustaining capital of $54M. The study models a payback period of 1.4 years. All-in sustaining costs are pegged at 742.3 USD/oz AuEq. Economics are based on Gold: $2,119/oz, Copper: $4.16/lb, Silver: $26.89/oz.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 10.6 years. Average annual production is approximately 141000 oz AuEq pa. Average head grade is 0.63 g/t Au, 0.44% Cu, 1.64 g/t Ag. Metallurgical recovery averages 87.1%. The open-pit strip ratio is 2.3.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Meridian Mining UK Societas'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 | 37.11 Mt | 0.67 g/t Au, 1.64 g/t Ag, 0.45% Cu | 797.103 koz Au, 1,962.660 koz Ag, 364.903 Mlbs Cu |
| Probable | 4.59 Mt | 0.36 g/t Au, 1.57 g/t Ag, 0.40% Cu | 52.773 koz Au, 231.754 koz Ag, 40.480 Mlbs Cu |
| Proven & Probable | 41.70 Mt | 0.63 g/t Au, 1.64 g/t Ag, 0.44% Cu | 849.876 koz Au, 2,194.414 koz Ag, 405.384 Mlbs Cu |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 64.69 Mt | 0.57 g/t Au, 0.34% Cu, 1.34 g/t Ag | 1,175.68 koz Au, 221.61 kt Cu, 2,787.77 koz Ag |
| Indicated | 5.41 Mt | 0.48 g/t Au, 0.22% Cu, 0.99 g/t Ag | 83.54 koz Au, 11.87 kt Cu, 172.59 koz Ag |
| Measured & Indicated | 70.1 Mt | 0.56 g/t Au, 0.33% Cu, 1.31 g/t Ag | 1,259.22 koz Au, 233.48 kt Cu, 2,960.36 koz Ag |
Our Analysis
The 61% after-tax IRR places this project in the top quartile of our tracked universe, well above the 15-20% threshold that typically unlocks project financing for developers. The 5% discount rate used for NPV reporting is at the low end of convention, which inflates the headline $984M NPV—a figure that should be read with that caveat. Capital intensity is low at 25% of NPV, and the 1.4-year payback reduces execution risk, but the 10.6-year mine life is short, limiting long-term cash flow visibility.
The NPV-to-market-cap ratio of 1.7x is a two-sided signal: it could indicate the market has not fully priced the asset, or it may reflect skepticism around financing, permitting, or jurisdictional risk in Mato Grosso, Brazil—a mining-friendly but operationally challenging region. The study’s gold price assumption of $2,119/oz sits well below the current spot of $4,123.70/oz, suggesting material upside to returns if realized. The single most important risk is funding the $248M initial capex relative to the company’s market cap, which implies significant dilution risk for a single-asset developer.
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.