Cebolleta PEA: $84M NPV, 17.7% IRR
Premier American Uranium Inc.'s Cebolleta in Cibola County, New Mexico, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $84M, an after-tax IRR of 17.7%, and initial capital of $113M. The mine plan runs 13 years at about 1.4 Mlb U3O8/yr per year.
Premier American Uranium Inc.'s Cebolleta has reported Preliminary Economic Assessment (PEA) results for the uranium project in Cibola County, New Mexico, USA. The study headlines an after-tax net present value of $84M at a 8% discount rate. It reflects Premier American Uranium Inc.'s (PUR.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $84M using a 8% discount rate. After-tax IRR is 17.7%. Initial capital expenditure is estimated at $113M. The study models a payback period of 4.9 years. Economics are based on Base case US$90/lb U3O8.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 13 years. Average annual production is approximately 1.4 Mlb U3O8/yr. Metallurgical recovery averages 80%.
These figures are extracted from Premier American Uranium Inc.'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 | 9.70 Mst | 0.12% eU3O8 | 23.75 Mlb eU3O8 |
| Total Indicated less Depletion | 8.30 Mst | 0.12% eU3O8 | 20.31 Mlb eU3O8 |
| Inferred | 3.60 Mst | 0.10% eU3O8 | 7.04 Mlb eU3O8 |
| Inferred | 1.79 Mst | 0.12% eU3O8 | 4.42 Mlb eU3O8 |
| Inferred | 1.81 Mst | 0.07% eU3O8 | 2.62 Mlb eU3O8 |
| Indicated Underground | 5.89 Mst | 0.15% eU3O8 | 18.14 Mlb eU3O8 |
| Indicated Open Pit | 3.81 Mst | 0.07% eU3O8 | 5.61 Mlb eU3O8 |
| Depletion | -1.40 Mst | 0.12% eU3O8 | -3.44 Mlb eU3O8 |
Our Analysis
- IRR after-tax
- 17.7%
higher than 8% of 12 projects we track
- NPV after-tax
- $84M
higher than 15% of 13 projects we track
- Initial capex
- $113M
135% of NPV
costlier than 36% of 11 projects we track
- Payback
- 4.9yrs
slower than 92% of 281 projects we track
- Mine life
- 13yrs
- Discount rate
- 8%
- Study price assumption
- Base case US$90/lb U3O8
The financing question is the project. With initial capex of $113M against a US$38M market cap, the build cost is roughly three times what this company is worth. That is not a gap a nano-cap quietly bridges with internal cash flow or a modest debt facility. The realistic paths are a strategic partner, a streaming arrangement, or significant equity dilution, and each carries a different implication for existing holders. A partner with uranium expertise would be the least dilutive but would demand a substantial stake; equity issuance at this scale would meaningfully dilute current shareholders before a single pound of production is sold.
The economics are the supporting act, and they are unremarkable. The after-tax IRR of 17.7% ranks in the bottom quartile of the uranium projects we track, and the NPV of $84M is roughly 2.2x market cap, a gap that reads either as market skepticism or as headroom, depending on how credible the financing path looks. Payback of 4.9 years is long, and the PEA stage means the capital estimate carries a wide band of uncertainty. The base case price assumption of US$90/lb U3O8 is the study's own sensitivity, not a market signal, but it is the fulcrum on which these returns turn.
The asset sits in Cibola County, New Mexico, a mining-friendly US jurisdiction that lowers political risk and should make the numbers easier to trust than in a higher-risk setting. That helps, but it does not solve the core tension. This is one of 10 projects in a diversified portfolio, which spreads risk but also means management attention and capital are competing across a broader slate. The single question that decides whether this works is simple: who writes the $113M cheque, and what do existing holders give up for it?
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.