Fenelon PEA: C$706M NPV, 21% IRR
Wallbridge Mining Company Limited's Fenelon in Quebec, Abitibi, Canada has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$706M, an after-tax IRR of 21%, and initial capital of C$579M. The mine plan runs 16 years at about 107000 oz Au per year.
Wallbridge Mining Company Limited's Fenelon has reported Preliminary Economic Assessment (PEA) results for the gold project in Quebec, Abitibi, Canada. The study headlines an after-tax net present value of C$706M at a 5% discount rate. It reflects Wallbridge Mining Company Limited's (WM.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$706M using a 5% discount rate. After-tax IRR is 21%. Initial capital expenditure is estimated at C$579M, with life-of-mine sustaining capital of C$449M. The study models a payback period of 4 years. All-in sustaining costs are pegged at 1046 USD/oz. Economics are based on US$2,200/oz gold; FX 1.35 CAD/USD.
Production and mine plan. The project envisions an underground & open-pit operation. Life of mine is 16 years. Average annual production is approximately 107000 oz Au. Average head grade is 3.34 g/t Au. Metallurgical recovery averages 96%.
Resources and ownership. Mineral resources: Indicated: 15,087 kt @ 3.62 g/t Au for 1,754 koz; Inferred: 15,028 kt @ 3.41 g/t Au for 1,649 koz. Royalties and streams: 4% royalty.
These figures are extracted from Wallbridge Mining Company Limited'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
The 21% after-tax IRR sits in the bottom quartile of the 90 gold projects we track, but it clears the practical financing hurdle for a developer of this risk profile. For a single-asset junior, the 20%+ threshold is the relevant benchmark, and this project just meets it. The 5% discount rate is at the low end of reporting convention, which flatters the NPV figure; a higher, more conservative rate would compress the headline C$706M NPV meaningfully.
The NPV-to-market-cap gap of roughly 4.3x is the central tension. It could mean the market has not priced in the asset’s value, or it could signal skepticism around financing, permitting, or jurisdiction risk. Initial capex at 82% of NPV is moderately capital-intensive, and at C$579M it is large relative to market cap, implying significant dilution risk for a developer. The study’s US$2,200/oz gold price sits well below the current spot of $4,193.80/oz, so returns are likely understated if that price holds. The single most important risk is funding: this is a large, moderately capital-intensive project for a junior with a small equity base, and the market’s willingness to finance it will determine whether the NPV gap closes or widens.
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.