Coffee Gold Project PEA: $2.20B NPV, 43.5% IRR
Fuerte Metals Corp.'s Coffee Gold Project in Yukon, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $2.20B and an after-tax IRR of 43.5%. The mine plan runs 13 years at about 217 koz Au per year.
Fuerte Metals Corp.'s Coffee Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Yukon, Canada. The study headlines an after-tax net present value of $2.20B at a 5% discount rate. It reflects Fuerte Metals Corp.'s (FMT.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $2.20B using a 5% discount rate. After-tax IRR is 43.5%. All-in sustaining costs are pegged at 1386 USD/oz. Economics are based on Consensus gold prices: $4,110/oz for 2029 and $3,620/oz in 2030 and beyond; spot $5,000/oz.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 13 years. Average annual production is approximately 217 koz Au. Metallurgical recovery averages 77.5%.
These figures are extracted from Fuerte 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 |
|---|---|---|---|
| Measured | 1,200 kt | 1.80 g/t Au | 69 koz Au |
| Indicated | 78,846 kt | 1.14 g/t Au | 2,888 koz Au |
| Measured & Indicated | 80,046 kt | 1.15 g/t Au | 2,957 koz Au |
| Inferred | 21,200 kt | 1.17 g/t Au | 800 koz Au |
Our Analysis
- IRR after-tax
- 43.5%
higher than 56% of 96 projects we track
- NPV after-tax
- $2.20B
- Mine life
- 13yrs
- Discount rate
- 5%
- Study price assumption
- Consensus gold prices: $4,110/oz for 2029 and $3,620/oz in 2030 and beyond; spot $5,000/oz
- Spot gold today
- $4,034.70/oz
A 43.5% after-tax IRR places this project in the upper half of the 96 gold peers we track, well above the ~15% threshold needed for project finance and the 20%+ hurdle typical for single-asset juniors. The 5% discount rate used to report the $2.20B NPV is at the low end of convention, which inflates the headline figure; a higher rate would compress the NPV significantly, so the absolute value should be treated with caution. The NPV-to-market-cap ratio of roughly 2.7x is a double-edged signal: it could indicate the market has not yet priced in the asset’s potential, or it could reflect skepticism about the developer’s ability to finance and execute without heavy dilution.
Capital intensity is the key watch-item here. The study’s price deck ($4,110/oz in 2029, $3,620/oz thereafter) sits below the current spot of $4,034.70/oz, suggesting some upside if prices hold, but the gap is modest. Yukon, Canada is a mining-friendly jurisdiction, which lowers political risk, but the single-asset nature and 13-year mine life mean financing risk is acute—capex relative to market cap will determine whether equity dilution or debt structuring is the path forward. The most important risk is funding: a large capex bill for a junior developer in a volatile gold market could strain the balance sheet and delay timelines.
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.