Cerro de Oro Project PEA: $718M NPV, $28M Capex
Minera Alamos Inc.'s Cerro de Oro Project in Zacatecas, Mexico has a Preliminary Economic Assessment (PEA) outlining a pre-tax NPV of $718M 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 a pre-tax net present value of $718M at a 5% discount rate. It reflects Minera Alamos Inc.'s (MAI.V) latest disclosed economics for the asset.
Economics. The pre-tax NPV is $718M using a 5% discount rate. Initial capital expenditure is estimated at $28M. All-in sustaining costs are pegged at 873 USD/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. The open-pit strip ratio is 0.30:1.
Resources and ownership. The company holds a 100% interest in the project.
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
The project’s 8.2-year mine life and $28M initial capex—just 4% of pre-tax NPV—make this an unusually capital-light gold developer. The pre-tax NPV of $718M, roughly 1.7x the company’s market cap, creates a wide valuation gap. That could signal the market has not priced in the asset, but it equally suggests skepticism about execution risk, permitting timelines, or jurisdiction concerns in Zacatecas, Mexico—a mining-friendly but operationally challenging region.
The study’s gold price assumption is not disclosed, but with spot at $4,187.30/oz, any materially lower study price would imply upside. The key risk is the short mine life: 8.2 years offers limited margin for error on grade, cost overruns, or permitting delays. The low capex reduces financing risk, but the single-asset, short-life profile demands disciplined execution. Watch for any permitting or community friction in Zacatecas that could compress an already tight operating window.
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.