Cove Underground PEA: $271M NPV, 30% IRR
i-80 Gold Corp.'s Cove Underground in Nevada, USA (Lander County) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $271M and an after-tax IRR of 30%.
i-80 Gold Corp.'s Cove Underground has reported Preliminary Economic Assessment (PEA) results for the gold project in Nevada, USA (Lander County). The study headlines an after-tax net present value of $271M at a 5% discount rate. It reflects i-80 Gold Corp.'s (IAU.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $271M using a 5% discount rate. After-tax IRR is 30%. Economics are based on $2,175/oz Au (base-case); also $3,000/oz sensitivity.
Production and mine plan. The project envisions an underground operation. Average annual production is approximately 100 koz Au.
These figures are extracted from i-80 Gold 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.
Our Analysis
- IRR after-tax
- 30%
higher than 30% of 96 projects we track
- NPV after-tax
- $271M
- Discount rate
- 5%
- Study price assumption
- $2,175/oz Au (base-case); also $3,000/oz sensitivity
- Spot gold today
- $4,034.70/oz
At 30% after-tax IRR, the project ranks in the lower half of the 96 Gold projects we track, and comfortably clears the ~15% after-tax return developers typically need to finance a build. The study discounts at 5%, the low end of the reporting convention, which flatters the headline NPV. Its after-tax NPV is below the company's market capitalisation (roughly 0.2x, on a currency-adjusted basis) — a modest slice of the company's value, as you'd expect for one asset in a larger portfolio. The project is located in Nevada, USA (Lander County), a factor in its overall risk profile. For context, gold currently trades around $4,034.70/oz.
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.