Entrée/Oyu Tolgoi JV Property (Hugo North Extension Lift 1) Feasibility Study: $131M NPV Over a 17-Year Mine Life
Entrée Resources Ltd.'s Entrée/Oyu Tolgoi JV Property (Hugo North Extension Lift 1) in Mongolia has a Feasibility Study outlining an after-tax NPV of $131M. The proposed mine plan runs 17 years.
Entrée Resources Ltd.'s Entrée/Oyu Tolgoi JV Property (Hugo North Extension Lift 1) has reported Feasibility Study results for the copper, gold, silver project in Mongolia. The study headlines an after-tax net present value of $131M at a 8% discount rate. It reflects Entrée Resources Ltd.'s (ETG.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $131M using a 8% discount rate. All-in sustaining costs are pegged at 1.26 USD/lb payable Cu. Economics are based on Copper $3.25/lb, Gold $1,591.00/oz, Silver $21.08/oz.
Production and mine plan. The project envisions an underground (block cave) operation. Life of mine is 17 years. Average head grade is 1.5% Cu, 0.53 g/t Au, 3.6 g/t Ag.
Resources and ownership. The company holds a 20% interest in the project. Royalties and streams: OTLLC carries Entrée's share of development capital via non-recourse loan; loan repaid from 90% of Entrée's free operating cash flow.
These figures are extracted from Entrée Resources Ltd.'s technical disclosures and reflect the most recent Feasibility Study 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 |
|---|---|---|---|
| Probable | 40 Mt | 1.5% Cu, 0.53 g/t Au, 3.6 g/t Ag | 1,340 Mlb Cu, 676 koz Au, 4,613 koz Ag |
Our Analysis
Its after-tax NPV is below the company's market capitalisation (roughly 0.3x, 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 Mongolia, a factor in its overall risk profile.
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.