Copperstone Project PFS: $374M NPV, 108% IRR
Minera Alamos Inc.'s Copperstone Project in Arizona, La Paz County, USA has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $374M, an after-tax IRR of 108%, and initial capital of $58M. The mine plan runs 6.3 years at about 46 koz Au per year.
Minera Alamos Inc.'s Copperstone Project has reported Pre-Feasibility Study (PFS) results for the gold project in Arizona, La Paz County, USA. The study headlines an after-tax net present value of $374M at a 5% discount rate. It reflects Minera Alamos Inc.'s (MAI.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $374M using a 5% discount rate. After-tax IRR is 108%. Initial capital expenditure is estimated at $58M. The study models a payback period of 1.2 years. All-in sustaining costs are pegged at 1314 USD/oz. Economics are based on Base Case $3,500/oz gold price; Spot Case $4,500/oz gold price.
Production and mine plan. The project envisions an underground operation. Life of mine is 6.3 years. Average annual production is approximately 46 koz Au.
These figures are extracted from Minera Alamos Inc.'s technical disclosures and reflect the most recent PFS 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 |
|---|---|---|---|
| Proven | 1,052 kt | 5.06 g/t | 172 koz Au |
| Probable | 882 kt | 4.61 g/t | 131 koz Au |
| Proven & Probable | 1,934 kt | 4.87 g/t | 303 koz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 2,198 kt | 5.08 g/t | 359 koz Au |
| Indicated | 1,856 kt | 4.54 g/t | 271 koz Au |
| Measured & Indicated | 4,054 kt | 4.83 g/t | 630 koz Au |
| Inferred | 401 kt | 4.04 g/t | 52 koz Au |
Our Analysis
- IRR after-tax
- 108%
higher than 91% of 103 projects we track
- NPV after-tax
- $374M
higher than 46% of 140 projects we track
- Initial capex
- $58M
16% of NPV
costlier than 24% of 136 projects we track
- Payback
- 1.2yrs
slower than 19% of 83 projects we track
- Mine life
- 6.3yrs
- Discount rate
- 5%
- Study price assumption
- Base Case $3,500/oz gold price; Spot Case $4,500/oz gold price
- Spot gold today
- $4,410.10/oz
The outlier here is the capital efficiency: a $58M build cost returning a 108% after-tax IRR with a 1.2-year payback is a combination that screens in the top decile of the gold projects we track. The capital comes back almost before the second pour, which is precisely why the economics look so unusual. The NPV of $374M, roughly 0.9x the company's market cap, is less remarkable, ranking only in the middle of our tracked universe, but the speed of return is the headline.
The catch is the scale and the stage. A 6.3-year mine life is short, and this is a PFS, not a feasibility study, so the estimate carries a roughly plus or minus 25% band. The project is already in construction, which narrows the execution risk window, but it also means the capital is being spent now, not when a final study is signed off. The $58M capex is only about 0.1x the company's $431M market cap, so funding is not the constraint it would be for a single-asset junior; this is one of 11 projects the company tracks, and the balance sheet can absorb the build. The jurisdiction, Arizona, is a low-risk signal that supports the feasibility of a fast, small build.
The price assumption is the tension. The study's base case sits at $3,500/oz, but the current spot is $4,410.10/oz, so the returns are calculated on a conservative price, leaving upside if gold holds. The 5% discount rate is at the low end of convention and flatters the NPV, but the payback is so fast that the discount rate barely matters. The single question that decides this project is whether the 6.3-year mine life can be extended, because the economics are exceptional only if the orebody lasts long enough to justify the build.
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.