Khoemacau Project Economics: $900M Capex
Royal Gold, Inc.'s Khoemacau has an economic study outlining initial capital of $900M.
Royal Gold, Inc.'s Khoemacau has reported economic study results for the silver project. It reflects Royal Gold, Inc.'s (RGLD) latest disclosed economics for the asset.
Economics. Initial capital expenditure is estimated at $900M.
Resources and ownership. Royalties and streams: Silver stream, net of 90% payability factor.
These figures are extracted from Royal Gold, Inc.'s technical disclosures and reflect the most recent disclosure 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
- Initial capex
- $900M
costlier than 97% of 30 projects we track
- Spot silver today
- $57.52/oz
A large-cap developer with a US$16.59B market cap and a diversified portfolio of projects is proposing a US$900M silver mine. That build cost is small relative to the company's equity, which is the sharpest funding-risk signal here: this is not a company that needs to beg for capital or dilute heavily to get shovels in the ground. Among the silver projects we track, the initial capex sits in the lowest tier, a reminder that this is a modest outlay for a diversified producer, not a bet-the-company build. The question is not whether the company can afford it, but whether the returns justify the allocation of capital within a large portfolio.
The project is already in production, which removes the permitting and construction timeline uncertainty that plagues most peers. That operational track record gives the study's figures a credibility that a scoping-level PEA cannot claim. The live spot price for silver sits at $57.52/oz, and if the study's price assumption is materially below that, the returns are understated; if above, the headline figures carry optimism. Without the study's assumed price in the inputs, the investor must check that gap directly.
The single question that decides whether this works: does the IRR rank among the top tier of the silver projects we track, or is it merely average? A large-cap can finance a US$900M build quietly, but it will not do so for mediocre returns when it has a full portfolio of other projects competing for the same capital. If the IRR is middle-of-the-pack, the market is right to be skeptical; if it leads the peer set, the company has a genuine value-creator that the diversified portfolio structure can fund without drama.
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.