Cerro de Oro Project PEA: $151M NPV, $28M Capex
Minera Alamos Inc.'s Cerro de Oro Project in Zacatecas, Mexico has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $151M and initial capital of $28M. The mine plan runs 8.2 years at about 58 koz Au per year.
Minera Alamos Inc.'s Cerro de Oro Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Zacatecas, Mexico. The study headlines an after-tax net present value of $151M at a 5% discount rate. It reflects Minera Alamos Inc.'s (MAI.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $151M using a 5% discount rate. Initial capital expenditure is estimated at $28M. All-in sustaining costs are pegged at 873 USD/oz. Economics are based on $1,600/oz Au base case; Inferred MRE also at $1,900/oz Au; presentation cites $718M NPV5% at $4,000/oz.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 8.2 years. Average annual production is approximately 58 koz Au. Average head grade is 0.37 g/t Au (at $1,600/oz); 0.35 g/t Au (at $1,900/oz). The open-pit strip ratio is 0.30:1.
These figures are extracted from Minera Alamos 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 |
|---|---|---|---|
| Inferred | 67 Mt | 0.37 g/t Au | 790 koz Au |
| Inferred | 78 Mt | 0.35 g/t Au | 865 koz Au |
Our Analysis
- NPV after-tax
- $151M
higher than 22% of 189 projects we track
- Initial capex
- $28M
19% of NPV
costlier than 8% of 175 projects we track
- Mine life
- 8.2yrs
- Study price assumption
- $1,600/oz Au base case; Inferred MRE also at $1,900/oz Au; presentation cites $718M NPV5% at $4,000/oz
- Spot gold today
- $4,225.70/oz
An 8.2-year mine life puts this Zacatecas gold development in the middle of the pack we track: long enough to repay a build, short enough that the back half of the schedule carries real reinvestment risk. The after-tax NPV of $151M ranks above only 22% of the 189 gold projects in our database, so on absolute scale this is a smaller asset than most of its peers. That ranking is the honest starting point: nothing here is an outlier in either direction.
What does stand out is the funding profile. Initial capex of $28M is 19% of NPV and sits below 92% of the 175 gold projects we track, which makes this one of the least capital-hungry builds in the set. For a company running 12 projects, that matters: a $28M commitment is the kind of cheque a diversified developer can write without a transformative financing, and it keeps dilution contained relative to peers whose builds run to multiples of their equity value. The trade-off is that a small NPV does not leave much room for error, and an 8.2-year life limits how much of the value can be compounded.
The caution is the study itself. This is a scoping-level PEA, which may lean on inferred resources and carries a capital estimate with a plus or minus 50% band, so the $28M and the $151M should be read as directional rather than bankable. The comparison to the 2023 PEA is flat across NPV, capex and mine life, which suggests refinement rather than a step change in the asset. The base case uses $1,600/oz against a live spot of $4,225.70/oz, and the company's own presentation cites a $718M NPV at $4,000/oz, so the headline numbers are conservative relative to today's market. Whether the deposit can be converted to reserves at a scale that justifies a feasibility study is the question that decides this one.
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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