Carangas PEA: $2.65B NPV, 35.9% IRR
New Pacific Metals Corp.'s Carangas in Bolivia (Oruro Department) 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 Bolivia (Oruro Department). 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 Carangas after-tax economics based on $45/oz silver, $3,400/oz gold, $1.20/lb zinc and $0.90/lb lead (base case); also shown $67.50/oz Ag, $3,400/oz Au scenario. MRE resource (for resource estimation): $41.00/oz Ag, $3,300.00/oz Au, $1.00/lb Pb, $1.30/lb Zn, recovery 81.6% Ag, 93.4% Au, 73.4% Pb, 66.9% Zn, 38.7% Cu, cut-off 30 g/t AgEq.
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 | 238.8 Mt | 69 g/t AgEq, 28 g/t Ag, 0.29 g/t Au, 0.28% Pb, 0.54% Zn | 529.6 Mozs AgEq, 213.4 Mozs Ag, 2,200.5 Kozs Au, 1,452.4 Mlbs Pb, 2,821.3 Mlbs 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 Mozs AgEq, 52.1 Mozs Ag, 383.4 Kozs Au, 324.9 Mlbs Pb, 612.3 Mlbs Zn |
Our Analysis
- IRR after-tax
- 35.9%
higher than 42% of 24 projects we track
- NPV after-tax
- $2.65B
higher than 100% of 27 projects we track
- Initial capex
- $644M
24% of NPV
costlier than 93% of 30 projects we track
- Payback
- 2.4yrs
slower than 64% of 14 projects we track
- Mine life
- 19yrs
- Discount rate
- 5%
- Study price assumption
- Carangas after-tax economics based on $45/oz silver, $3,400/oz gold, $1.20/lb zinc and $0.90/lb lead (base case); also shown $67.50/oz Ag, $3,400/oz Au scenario. MRE resource (for resource estimation): $41.00/oz Ag, $3,300.00/oz Au, $1.00/lb Pb, $1.30/lb Zn, recovery 81.6% Ag, 93.4% Au, 73.4% Pb, 66.9% Zn, 38.7% Cu, cut-off 30 g/t AgEq
- Spot silver today
- $67.16/oz
The headline number here is the chasm between the study's NPV and the company's own valuation: the project is worth about 2.1 times the entire market cap of its owner. That gap invites two readings. The optimistic one is that the market simply has not caught up to the asset's scale. The skeptical one is that investors are pricing in the difficulty of getting a US$644M build financed and permitted in Bolivia when that capex equals roughly half of the company's total equity value. A small-cap cannot quietly fund a project of this size; it will need partners, debt, or dilution, and the market may be discounting for exactly that friction.
The returns themselves are respectable but not exceptional. The 35.9% after-tax IRR clears the ~15% hurdle developers typically need to attract project finance, and it ranks above 42% of the 24 silver projects we track, a lower-half showing. The NPV of $2.65B ranks at the top of our silver universe, but that figure is flattered by the 5% discount rate, the low end of reporting convention. Payback of 2.4 years is moderate, suggesting capital returns reasonably quickly if the build goes to plan, which is one point in favor of the financing story. The PEA stage, however, is the real caveat: scoping-level estimates carry a wide error band, and the capital number could move materially before a feasibility study lands.
The base case assumes $45/oz silver, well below today's $67.16/oz spot, so the economics have meaningful upside if prices hold, and the study's own $67.50/oz scenario underscores that sensitivity. But the jurisdiction, Bolivia, adds a layer of execution risk that a peer in a mining-friendly district would not carry. The single question that decides this project: can a company with a US$1.27B market cap finance and permit a US$644M build in Bolivia without surrendering so much value that the NPV-to-market-cap gap closes for the wrong reason?
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.