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 10.6 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 19.16 USD/oz AgEq. Economics are based on $45/oz silver, $3,400/oz gold, $1.20/lb zinc, $0.90/lb lead (base case); also shown $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 10.6 Moz Ag. The open-pit strip ratio is 1.4.
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 | 239 Mt | 69 g/t AgEq, 28 g/t Ag, 0.3 g/t Au, 0.3% Pb, 0.5% Zn | 530 Moz AgEq, 213 Moz Ag, 2,201 Koz Au, 1,452 Mlb Pb, 2,821 Mlb Zn |
| Inferred | 54 Mt | 65 g/t AgEq, 30 g/t Ag, 0.2 g/t Au, 0.3% Pb, 0.5% Zn | 113 Moz AgEq, 52 Moz Ag, 383 Koz Au, 325 Mlb Pb, 612 Mlb Zn |
| Measured & Indicated (Total) | 293 Mt | 78 g/t AgEq, 44 g/t Ag, 0.2 g/t Au, 0.2% Pb, 0.4% Zn | 732 Moz AgEq, 415 Moz Ag, 2,201 Koz Au, 1,452 Mlb Pb, 2,821 Mlb Zn |
| Inferred (Total) | 59 Mt | 67 g/t AgEq, 35 g/t Ag, 0.2 g/t Au, 0.2% Pb, 0.5% Zn | 126 Moz AgEq, 65 Moz Ag, 383 Koz Au, 325 Mlb Pb, 612 Mlb Zn |
Our Analysis
The 35.9% after-tax IRR sits in the lower half of our tracked silver peers, but it clears the practical financing hurdle for a single-asset junior by a wide margin. The 5% discount rate is a tell: it flatters the $2.65B NPV, as a higher rate would compress it significantly. The NPV-to-market-cap gap of roughly 3.4x cuts both ways—it could signal the market has not priced the asset, or it reflects skepticism on permitting, jurisdiction risk, or financing execution in Bolivia.
Capital intensity is low at 24% of NPV, reducing funding risk, though the $644M initial capex is large relative to market cap, implying dilution risk for a developer. The base-case price of $45/oz silver sits well below the current spot of $56.33/oz, suggesting upside if prices hold, but the study’s own sensitivity to $67.50/oz shows returns are highly price-dependent. The single most important watch-item is jurisdiction: Bolivia’s mining policy history introduces execution and political risk that the IRR does not fully capture.
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.