Coosa Graphite Project PEA: $190M NPV, 24.2% IRR
Westwater Resources Inc.'s Coosa Graphite Project in Coosa County, Alabama, USA has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $190M, an after-tax IRR of 24.2%, and initial capital of $152M. The mine plan runs 22 years at about 99 kstpa Cg concentrate per year.
Westwater Resources Inc.'s Coosa Graphite Project has reported Preliminary Economic Assessment (PEA) results for the graphite project in Coosa County, Alabama, USA. The study headlines an after-tax net present value of $190M at a 8% discount rate. It reflects Westwater Resources Inc.'s (WWR) latest disclosed economics for the asset.
Economics. The after-tax NPV is $190M using a 8% discount rate. After-tax IRR is 24.2%. Initial capital expenditure is estimated at $152M, with life-of-mine sustaining capital of $142M. Economics are based on Cg price of US$998/st ($1,110/tonne); long-term graphite concentrate price of US$1,100/st for resource estimate; Graphite price CIF Kellyton Plant US$998/st ($1,100/tonne).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 22 years. Average annual production is approximately 99 kstpa Cg concentrate. Average head grade is 3.21% Cg. Metallurgical recovery averages 92%. The open-pit strip ratio is 0.21:1.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Merchant 0.5% NSR up to a maximum of $150,000; Lessor 2% NSR. Coosa County Severance Tax: $5/st concentrate..
These figures are extracted from Westwater Resources 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 | 26 Mst | 2.89% Cg | 1,509 Mlb / 754,000 st Cg |
| Inferred | 97 Mst | 3.08% Cg | 5,996 Mlb / 2,998,000 st Cg |
Our Analysis
- IRR after-tax
- 24.2%
higher than 0% of 10 projects we track
- NPV after-tax
- $190M
higher than 0% of 10 projects we track
- Initial capex
- $152M
80% of NPV
costlier than 33% of 12 projects we track
- Mine life
- 22yrs
- Discount rate
- 8%
- Study price assumption
- Cg price of US$998/st ($1,110/tonne); long-term graphite concentrate price of US$1,100/st for resource estimate; Graphite price CIF Kellyton Plant US$998/st ($1,100/tonne)
The build cost is the story. At roughly 2.9x the company's entire market cap, the $152M initial capex cannot be quietly funded from cash flow or a modest equity raise. This is a micro-cap with a US$52M valuation asking the market to write a cheque nearly three times its size. Realistically, that means either substantial dilution for existing holders or a strategic partner with deep pockets and a reason to secure domestic graphite supply. The 3.6x NPV-to-market-cap gap cuts both ways: it could signal the market has not credited the asset, or it could reflect skepticism that a junior of this scale can finance and execute a build of this magnitude in Alabama.
The project economics are the supporting act, and they are modest. The 24.2% after-tax IRR clears the practical hurdle for a higher-risk junior developer, which typically needs 20% or more to attract project finance, but it ranks in the bottom quartile of the 10 graphite projects we track. The $190M after-tax NPV carries the same rank. This is not a standout asset on returns; it is a marginal one whose case rests on jurisdiction and strategic positioning rather than headline numbers. The PEA stage adds a further layer of caution: scoping-level estimates carry a wide capital band, and the 22-year mine life does little to offset the uncertainty embedded in a preliminary study.
The study's price assumption of US$998/st for graphite concentrate is the key sensitivity. If realized, it underpins the returns as presented; if it softens, the already modest IRR compresses further. The real question, however, is not whether the price holds, but who pays for the build and at what cost to current shareholders. A partner could de-risk the balance sheet but would demand a large stake; a full dilution would hand the project's upside to new investors. Financing, not geology or grade, decides whether this project works.
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.