Camino Rojo Resource Estimate: $1.30B NPV, 30% IRR
Equinox Gold Corp.'s Camino Rojo in Mexico has a Mineral Resource Estimate outlining an after-tax NPV of $1.30B, an after-tax IRR of 30%, and initial capital of $608M. The mine plan runs 17 years at about 215000 oz Au per year.
Equinox Gold Corp.'s Camino Rojo has reported Mineral Resource Estimate results for the gold project in Mexico. The study headlines an after-tax net present value of $1.30B at a 5% discount rate. It reflects Equinox Gold Corp.'s (EQX.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $1.30B using a 5% discount rate. After-tax IRR is 30%. Initial capital expenditure is estimated at $608M. The study models a payback period of 3.16667 years. All-in sustaining costs are pegged at 1304 USD/oz. Economics are based on Reserve prices: $2,300/oz Au, $25/oz Ag. Resource prices: $2,800/oz Au, $33/oz Ag, $1.25/lb Zn (US$:C$ 1:1.34). PEA: $3,100/oz gold..
Production and mine plan. The project envisions an open-pit operation. Life of mine is 17 years. Average annual production is approximately 215000 oz Au. Metallurgical recovery averages 87%.
These figures are extracted from Equinox Gold Corp.'s technical disclosures and reflect the most recent Resource Estimate 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 (total) | 3,015 kt | 0.71 g/t Au, 17.4 g/t Ag | 69 koz Au, 1,684 koz Ag |
| Probable (total) | 30,399 kt | 0.73 g/t Au, 14.3 g/t Ag | 715 koz Au, 13,955 koz Ag |
| Total | 33,414 kt | 0.73 g/t Au, 14.6 g/t Ag | 785 koz Au, 15,638 koz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 3,355 kt | 0.71 g/t Au, 16.91 g/t Ag | 77 koz Au, 1,825 koz Ag |
| Indicated | 88,785 kt | 1.71 g/t Au, 12.02 g/t Ag, 0.21% Zn | 4,897 koz Au, 34,313 koz Ag, 402 Mlb Zn |
| Measured + Indicated | 92,141 kt | 1.68 g/t Au, 12.20 g/t Ag, 0.20% Zn | 4,974 koz Au, 36,138 koz Ag, 402 Mlb Zn |
| Inferred | 5,766 kt | 2.02 g/t Au, 11.39 g/t Ag, 0.46% Zn | 374 koz Au, 2,111 koz Ag, 58 Mlb Zn |
Our Analysis
- IRR after-tax
- 30%
higher than 33% of 99 projects we track
- NPV after-tax
- $1.30B
higher than 83% of 134 projects we track
- Initial capex
- $608M
47% of NPV
costlier than 83% of 125 projects we track
- Payback
- 3.2yrs
slower than 82% of 76 projects we track
- Mine life
- 17yrs
- Discount rate
- 5%
- Study price assumption
- Reserve prices: $2,300/oz Au, $25/oz Ag. Resource prices: $2,800/oz Au, $33/oz Ag, $1.25/lb Zn (US$:C$ 1:1.34). PEA: $3,100/oz gold.
- Spot gold today
- $4,107.00/oz
A 30% after-tax IRR places this project in the lower half of the 99 gold projects we track, while its $1.30B NPV ranks in the top quartile of a broader set. That split is the first thing to reconcile: the return is middling, but the value creation is strong, which is typical of a long-life, lower-grade asset rather than a high-margin, quick-payback one. The 3.2-year payback is unremarkable, ranking below most peers, so the investment case rests on durability, not speed. The 17-year mine life is the real anchor here: it is what justifies the NPV and what makes the project a portfolio asset rather than a development gamble.
The constraint that matters most is not geology but financing, and here the picture is unusually comfortable. Initial capex of $608M is just 47% of NPV, a capital-light build that ranks in the bottom fifth of the 125 projects we track, and it is small relative to the company's US$7.24B market cap. A mid-cap with 36 tracked projects can absorb this build without the dilution or distress that would plague a smaller developer. The two-sided read on the NPV-to-market-cap gap (about 0.2x) is that the market is neither pricing in a windfall nor punishing the asset; it is treating this as one modest piece of a diversified portfolio, which is exactly what the data show.
Two caveats temper the headline. First, this is a resource-stage estimate with no economic study behind it; the economics are indicative, and the reserve prices of $2,300/oz Au sit well below the current $4,107.00/oz spot, so the upside case is real but unproven. Second, the 5% discount rate flatters the NPV, though the capital-light profile and long life soften that distortion. The question that decides whether this works is whether the 17-year mine life in Mexico can be operated at the assumed costs through commodity cycles, because the IRR is not strong enough to forgive operational slippage.
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.