Coosa Project (Coosa Graphite) PEA: $190M NPV, 24.2% IRR
Westwater Resources Inc.'s Coosa Project (Coosa Graphite) in 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 103 kst Cg concentrate per year.
Westwater Resources Inc.'s Coosa Project (Coosa Graphite) has reported Preliminary Economic Assessment (PEA) results for the graphite project in 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 US$998/st (CIF Kellyton Plant); 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 103 kst 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 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
- US$998/st (CIF Kellyton Plant); graphite price CIF Kellyton Plant US$998/st ($1,100/tonne)
The build cost is the story. At US$152M in initial capex, this project asks for roughly 2.9x the company's entire US$52M market cap. No micro-cap quietly finances that; the cheque has to come from equity dilution, a strategic partner, or project debt, and each path carries a different cost for existing holders. A partner or off-taker with graphite-specific motives is the most plausible source, but that usually means surrendering a meaningful equity stake or offtake terms that cap the upside. The NPV sits at about 3.6x market cap, which cuts both ways: it suggests the market has not assigned much value to the asset, but it also reflects the reality that funding the build will likely swamp the current shareholder base before any of that NPV is captured.
The economics are the supporting act, and they are adequate rather than exciting. The 24.2% after-tax IRR clears the practical hurdle for a higher-risk junior developer, which typically sits at 20% or more, but it ranks in the bottom quartile of the 10 graphite projects we track. The US$190M after-tax NPV is similarly positioned. The study's 8% discount rate is a reporting convention, not an investment signal, and the PEA stage matters more: this is scoping-level work with a capital estimate that could swing by 50% in either direction, so the margin between a 24% IRR and a financing-stalling outcome is thinner than the headline suggests.
What keeps this interesting is durability. A 22-year mine life in Alabama, a mining-friendly jurisdiction, gives the asset a long runway that many graphite peers lack, and the US$998/st price assumption is a reasonable base case for a project with this profile. The single question that decides whether this works is not the IRR or the NPV, it is who writes the US$152M cheque and what they demand in return. If that answer is favorable, the project economics are good enough to matter; if not, the headline returns will never be realized.
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.