Carangas PEA: $2.65B NPV, 35.9% IRR
New Pacific Metals Corp.'s Carangas in Oruro Department, Bolivia has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $2.65B, an after-tax IRR of 35.9%, and initial capital of $644M. The mine plan runs 19 years at about 12.1 Moz Ag per year.
New Pacific Metals Corp.'s Carangas has reported Preliminary Economic Assessment (PEA) results for the silver project in Oruro Department, Bolivia. The study headlines an after-tax net present value of $2.65B at a 5% discount rate. It reflects New Pacific Metals Corp.'s (NUAG.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $2.65B using a 5% discount rate. After-tax IRR is 35.9%. Initial capital expenditure is estimated at $644M. The study models a payback period of 2.4 years. All-in sustaining costs are pegged at 18.25 USD/oz AgEq. Economics are based on $45/oz silver, $3,400/oz gold, $1.20/lb zinc, $0.90/lb lead (base case post-tax economics); sensitivity at $67.50/oz Ag, $3,400/oz Au.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 19 years. Average annual production is approximately 12.1 Moz Ag. The open-pit strip ratio is 1.4 t:t.
These figures are extracted from New Pacific Metals Corp.'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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 238.8 Mt | 69 g/t AgEq, 28 g/t Ag, 0.29 g/t Au, 0.28% Pb, 0.54% Zn | 529.6 Moz AgEq, 213.4 Moz Ag, 2,200.5 koz Au, 1,452.4 Mlb Pb, 2,821.3 Mlb Zn |
| Inferred | 53.8 Mt | 65 g/t AgEq, 30 g/t Ag, 0.22 g/t Au, 0.27% Pb, 0.52% Zn | 112.7 Moz AgEq, 52.1 Moz Ag, 383.4 koz Au, 324.9 Mlb Pb, 612.3 Mlb Zn |
Our Analysis
- IRR after-tax
- 35.9%
higher than 40% of 25 projects we track
- NPV after-tax
- $2.65B
higher than 96% of 28 projects we track
- Initial capex
- $644M
24% of NPV
costlier than 91% of 33 projects we track
- Payback
- 2.4yrs
slower than 67% of 15 projects we track
- Mine life
- 19yrs
- Discount rate
- 5%
- Study price assumption
- $45/oz silver, $3,400/oz gold, $1.20/lb zinc, $0.90/lb lead (base case post-tax economics); sensitivity at $67.50/oz Ag, $3,400/oz Au
- Spot silver today
- $67.15/oz
The gap is the story: an after-tax NPV of $2.65B against a US$1.14B market cap, roughly 2.3x the entire company. Read one way, the market has not connected the study to the equity. Read the other, a small-cap with a Bolivian silver development asset is being told that a scoping-level study, a permitting path and a nine-figure build are not yet bankable. Both readings are live, and the second is not cynicism: the NPV ranks higher than 96% of the 28 silver projects we track, yet the market is capitalising the company at less than half of it.
The returns support the first reading without settling it. A 35.9% after-tax IRR clears the roughly 15% developers typically need for project finance, and payback of 2.4 years means the capital comes back quickly by development standards. But the IRR ranks higher than only 40% of the 25 silver projects we track, so it sits in the lower half of that peer set: good enough to finance, not good enough to stand out. The 5% discount rate is a reporting convention rather than an investment hurdle, and the PEA itself is preliminary, may rest on inferred resources, and carries a capital estimate with a plus or minus 50% band. That band matters more than the headline.
Funding is where the two readings collide. Initial capex of $644M is 24% of NPV, which looks light against the 33 silver projects we track, yet it is about 0.6x the company's entire market cap: a build worth a large fraction of the equity, and not something that gets financed quietly. The study assumes $45/oz silver against a live spot of $67.15/oz, so the economics carry real upside if that price holds, with sensitivity work at $67.50/oz. The deciding question is whether a PEA-stage, 19-year Bolivian project can convert a scoping study into a funded, permitted build before the gap closes on its own.
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.
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