Cusi Mine PEA: $104M NPV, 94.8% IRR
Silverco Mining Inc.'s Cusi Mine in Chihuahua, Mexico has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $104M, an after-tax IRR of 94.8%, and initial capital of $19M. The mine plan runs 9 years at about 2.47 Moz AgEq per year.
Silverco Mining Inc.'s Cusi Mine has reported Preliminary Economic Assessment (PEA) results for the silver project in Chihuahua, Mexico. The study headlines an after-tax net present value of $104M at a 5% discount rate. It reflects Silverco Mining Inc.'s (SICO.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $104M using a 5% discount rate. After-tax IRR is 94.8%. Initial capital expenditure is estimated at $19M. The study models a payback period of 0.9 years. All-in sustaining costs are pegged at 26.75 USD/oz AgEq. Economics are based on Base case: 2026E: US$65/oz Ag, 2027E: US$60/oz Ag, 2028E: US$55/oz Ag, 2029: US$50/oz Ag, 2030: US$40/oz Ag, LT: US$38/oz Ag. Average ~US$44.58/oz Ag. Upside case: US$75/oz Ag..
Production and mine plan. The project envisions an underground operation. Life of mine is 9 years. Average annual production is approximately 2.47 Moz AgEq.
These figures are extracted from Silverco Mining 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 |
|---|---|---|---|
| Measured | 0.69 Mt | 277 g/t Ag, 0.08 g/t Au, 0.37% Pb, 0.42% Zn, 305 g/t AgEq | 6,114 koz Ag, 1.8 koz Au, 5.6 Mlb Pb, 6.3 Mlb Zn, 6,725 koz AgEq |
| Indicated | 4.21 Mt | 195 g/t Ag, 0.16 g/t Au, 0.78% Pb, 0.93% Zn, 255 g/t AgEq | 26,330 koz Ag, 22.2 koz Au, 72.7 Mlb Pb, 86.5 Mlb Zn, 34,433 koz AgEq |
| Measured & Indicated | 4.89 Mt | 206 g/t Ag, 0.15 g/t Au, 0.73% Pb, 0.86% Zn, 262 g/t AgEq | 32,443 koz Ag, 24.0 koz Au, 78.3 Mlb Pb, 92.8 Mlb Zn, 41,157 koz AgEq |
| Inferred | 4.07 Mt | 172 g/t Ag, 0.17 g/t Au, 0.89% Pb, 1.2% Zn, 243 g/t AgEq | 22,479 koz Ag, 22.2 koz Au, 79.5 Mlb Pb, 107.5 Mlb Zn, 31,753 koz AgEq |
Our Analysis
This project delivers a top-quartile 94.8% after-tax IRR among tracked silver peers, well above the practical financing hurdle for single-asset developers. The 5% discount rate used for NPV reporting is unusually low, which inflates the headline $104M NPV; a more conventional rate would materially reduce that figure. The NPV sits at roughly 0.4x market cap, which could signal the market has not fully priced the asset—or that investors are discounting execution risk, jurisdiction, or the aggressive price deck.
Capital intensity is low at $19M initial capex (18% of NPV), reducing funding risk, and the 0.9-year payback is exceptionally fast. However, the study’s base-case price assumption averages ~$44.58/oz, well below today’s spot of $59.98/oz, suggesting meaningful upside if prices hold. The single most important risk is the short 9-year mine life, which limits long-term cash flow and makes the project highly sensitive to silver price volatility beyond the modeled decline to $38/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.