Entrée/Oyu Tolgoi JV Property (Hugo North Extension Lift 2) PEA: $306M NPV Over a 22-Year Mine Life
Entrée Resources Ltd.'s Entrée/Oyu Tolgoi JV Property (Hugo North Extension Lift 2) in Mongolia has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $306M. The proposed mine plan runs 22 years.
Entrée Resources Ltd.'s Entrée/Oyu Tolgoi JV Property (Hugo North Extension Lift 2) has reported Preliminary Economic Assessment (PEA) results for the copper, gold, silver project in Mongolia. The study headlines an after-tax net present value of $306M 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 $306M using a 8% discount rate. All-in sustaining costs are pegged at 0.92 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 22 years. Average head grade is 1.35% Cu, 0.49 g/t Au, 3.6 g/t Ag (average expected run-of-mine grade).
Resources and ownership. The company holds a 20% interest in the project.
These figures are extracted from Entrée Resources Ltd.'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 |
|---|---|---|---|
| Indicated | 120 Mt | 1.70% Cu, 0.58 g/t Au, 4.3 g/t Ag, 2.04% CuEq | 4,500 Mlb Cu, 2,200 koz Au, 16,000 koz Ag |
| Inferred | 167 Mt | 1.02% Cu, 0.36 g/t Au, 2.8 g/t Ag, 1.23% CuEq | 3,800 Mlb Cu, 1,900 koz Au, 15,000 koz Ag |
Our Analysis
Its after-tax NPV is roughly in line with the company's market capitalisation (roughly 0.7x, on a currency-adjusted basis) — broadly consistent with how the market currently values the company. 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.