El Brocal Resource Estimate: $619M NPV Over a 17-Year Mine Life
Compania de Minas Buenaventura S.A.A.'s El Brocal in Peru, Pasco has a Mineral Resource Estimate outlining an after-tax NPV of $619M. The mine plan runs 17 years at about 4750 kt/yr per year.
Compania de Minas Buenaventura S.A.A.'s El Brocal has reported Mineral Resource Estimate results for the copper, silver, lead, zinc project in Peru, Pasco. The study headlines an after-tax net present value of $619M at a 10.18% discount rate. It reflects Compania de Minas Buenaventura S.A.A.'s (BVN) latest disclosed economics for the asset.
Economics. The after-tax NPV is $619M using a 10.18% discount rate. Economics are based on LOM LT prices: Cu US$4.90/lb, Au US$2,172/oz, Ag US$29.00/oz, Pb US$1.02/lb, Zn US$1.22/lb. Reserve prices: Zn US$2,400/t, Pb US$1,900/t, Ag US$24/oz, Cu US$8,800/t, Au US$1,900/oz..
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 17 years. Average annual production is approximately 4750 kt/yr. Average head grade is OP 1.70% Cu, 75.87 g/t Ag, 0.02 g/t Au, 0.52% Pb, 1.07% Zn; UG 1.22% Cu, 19.60 g/t Ag, 0.59 g/t Au. Metallurgical recovery averages 75%.
Resources and ownership. The company holds a 61.43% interest in the project.
These figures are extracted from Compania de Minas Buenaventura S.A.A.'s technical disclosures and reflect the most recent Resource Estimate 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 + Probable | 6,702 kt | 0.52% Pb, 1.07% Zn, 1.57% Cu, 75.87 g/t Ag, 0.02 g/t Au | 34.5 kt Pb, 71.8 kt Zn, 105 kt Cu, 16,348 koz Ag, 3.6 koz Au |
| Proven + Probable | 74,651 kt | 1.22% Cu, 19.60 g/t Ag, 0.59 g/t Au | 912 kt Cu, 47,038 koz Ag, 1,424 koz Au |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 315 kt | 0.70% Pb, 0.75% Zn, 1.28% Cu, 53.7 g/t Ag | 2.2 kt Pb, 2.4 kt Zn, 4.0 kt Cu, 543 koz Ag |
| Indicated | 640 kt | 0.20% Pb, 0.26% Zn, 1.30% Cu, 54.7 g/t Ag | 1.3 kt Pb, 1.7 kt Zn, 8.3 kt Cu, 1,125 koz Ag |
| Measured & Indicated | 954 kt | 0.36% Pb, 0.43% Zn, 1.29% Cu, 54.4 g/t Ag | 3.5 kt Pb, 4.1 kt Zn, 12.3 kt Cu, 1,688 koz Ag |
| Inferred | 1,539 kt | 0.08% Pb, 0.08% Zn, 1.37% Cu, 17.3 g/t Ag | 1.2 kt Pb, 1.3 kt Zn, 21.1 kt Cu, 857 koz Ag |
| Measured | 14,298 kt | 0.88% Cu, 16.6 g/t Ag, 0.48 g/t Au | 126 kt Cu, 7,648 koz Ag, 222 koz Au |
| Indicated | 18,611 kt | 0.88% Cu, 14.9 g/t Ag, 0.40 g/t Au | 164 kt Cu, 8,937 koz Ag, 242 koz Au |
| Measured & Indicated | 32,909 kt | 0.88% Cu, 15.7 g/t Ag, 0.44 g/t Au | 290 kt Cu, 16,584 koz Ag, 464 koz Au |
| Inferred | 24,907 kt | 1.34% Cu, 24.4 g/t Ag, 0.58 g/t Au | 334 kt Cu, 19,543 koz Ag, 463 koz Au |
Our Analysis
- NPV after-tax
- $619M
higher than 54% of 360 projects we track
- Mine life
- 17yrs
- Study price assumption
- LOM LT prices: Cu US$4.90/lb, Au US$2,172/oz, Ag US$29.00/oz, Pb US$1.02/lb, Zn US$1.22/lb. Reserve prices: Zn US$2,400/t, Pb US$1,900/t, Ag US$24/oz, Cu US$8,800/t, Au US$1,900/oz.
A 17-year mine life places this asset comfortably in the upper tier of the resource-stage projects we track, where the median profile rarely extends beyond a decade. That durability is the first thing an investor should weigh: it signals a deposit with enough scale to justify long-term infrastructure and a production profile that can ride out multiple commodity cycles. The after-tax NPV of $619M ranks higher than 54% of the 360 projects in our database, which is to say this is a solidly mid-pack performer, not a standout. In a diversified portfolio of 16 tracked projects for this company, it is a dependable contributor rather than a company-maker.
The constraint that matters most here is the study stage. This is a Resource Estimate, not a feasibility study or even a PEA. There is no economic study behind the NPV, so the $619M figure is indicative at best, a screening-level number that could move materially once mining costs, metallurgy and strip ratios are actually engineered. For a production-stage asset in Peru's Pasco region, the jurisdiction is credible but carries the usual Andean permitting and community-relations friction. The polymetallic nature (copper, silver, lead, zinc) spreads price risk, and the study's long-term assumptions (Cu $4.90/lb, Zn $1.22/lb) are reasonable sensitivity anchors, though they should be stress-tested downward given the absence of a defined reserve base.
The single question that decides whether this works is whether the resource can be converted into a reserve without a significant cost or grade penalty. A 17-year life suggests geological confidence, but resource-stage economics have a habit of compressing when the mine plan is built. If the conversion holds, the NPV is credible and the asset is a steady cash-flow contributor; if it does not, the $619M is a ceiling, not a floor. That conversion risk, not the commodity mix or the jurisdiction, is where an investor should focus.
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.