KSM PFS: $8M NPV, 16.1% IRR
Seabridge Gold Inc.'s KSM in British Columbia, Canada has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $8M, an after-tax IRR of 16.1%, and initial capital of $6.40B. The mine plan runs 33 years at about 1027 koz Au per year.
Seabridge Gold Inc.'s KSM has reported Pre-Feasibility Study (PFS) results for the gold & copper project in British Columbia, Canada. The study headlines an after-tax net present value of $8M at a 5% discount rate. It reflects Seabridge Gold Inc.'s (SEA.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $8M using a 5% discount rate. After-tax IRR is 16.1%. Initial capital expenditure is estimated at $6.40B, with life-of-mine sustaining capital of $3.20B. The study models a payback period of 3.7 years. All-in sustaining costs are pegged at 601 USD/oz Au. Economics are based on Base Case: Gold $1,742/oz, Copper $3.53/lb, Silver $18.0/oz, US$/C$ 0.77; Recent Spot Case: Gold $4,400/oz, Copper $5.75/lb, Silver $70.0/oz, US$/C$ 0.73.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 33 years. Average annual production is approximately 1027 koz Au. The open-pit strip ratio is 1:1.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Seabridge Gold Inc.'s technical disclosures and reflect the most recent PFS 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 | 2,292 M tonnes | 0.64 g/t Au, 0.14% Cu, 2.2 g/t Ag, 76 ppm Mo | 47.3 M oz Au, 7,320 M lbs Cu, 160 M oz Ag, 385 M lbs Mo |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 6,255 M tonnes | 0.47 g/t Au, 0.15% Cu, 2.3 g/t Ag, 61 ppm Mo | 95.5 M oz Au, 21,146 M lbs Cu, 460 M oz Ag, 837 M lbs Mo |
| Inferred | 8,469 M tonnes | 0.31 g/t Au, 0.23% Cu, 2.1 g/t Ag, 32 ppm Mo | 84.4 M oz Au, 42,722 M lbs Cu, 570 M oz Ag, 606 M lbs Mo |
Our Analysis
A 16.1% after-tax IRR places this project in the bottom quartile of our tracked peer set, barely clearing the practical financing hurdle for a developer. The 5% discount rate is a low-end reporting convention that inflates the headline NPV; at a more typical rate, the NPV would be materially lower or negative. The $8M NPV is negligible relative to the $6.40B initial capex, which at 81,013% of NPV signals extreme capital intensity and severe funding risk for a single-asset junior.
The large NPV-to-market-cap gap could mean the market has not priced the asset, but more likely reflects skepticism about financing a $6.40B build in a jurisdiction with permitting complexity. The study’s base-case gold price of $1,742/oz sits well below the current spot of $4,070.80/oz, suggesting returns could be higher if costs are contained—but the copper and silver assumptions also lag spot. The single most important risk is funding: with capex dwarfing both NPV and market cap, significant dilution or a partner is required, and the modest IRR offers little margin for error against cost overruns or schedule delays.
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.