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 217000 oz 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%. The study models a payback period of 1.97 years. All-in sustaining costs are pegged at 1386 USD/oz. Economics are based on Consensus: $4,110/oz for 2029, $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 217000 oz Au. Average head grade is 1.25 g/t Au. Metallurgical recovery averages 77.5%. The open-pit strip ratio is 7.6:1.
Resources and ownership. Royalties and streams: 3% NSR, re-purchasable for US$100M until 1-year after commercial production.
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
A 43.5% after-tax IRR places this project in the upper half of the 90 gold developers we track, well above the ~15% threshold for project finance and the 20%+ hurdle typical for single-asset juniors. The 2-year payback is unusually fast, reducing duration risk. However, the 5% discount rate used to derive the $2.20B NPV is at the low end of reporting convention, which inflates the headline figure; a more conservative rate would compress that value materially.
The NPV stands at roughly 2.7x the company's market cap, a gap that cuts both ways. It could signal the market has not yet priced in the asset's potential, but it more likely reflects skepticism around financing a project of this scale relative to the issuer's size. Capital intensity is the key funding risk here. The study's long-term price assumption of $3,620/oz sits well below the current spot of $4,091.60/oz, suggesting the base-case returns may be conservative on price. The single most important watch-item is the ability to secure development capital without severe dilution, given the large capex relative to market cap. Yukon is a mining-friendly jurisdiction, but remote logistics and seasonal construction windows add execution risk.
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.