La Caridad (LC) PFS: $927M NPV, $737M Capex
Southern Copper Corporation's La Caridad (LC) in Mexico (Sonora, Nacozari region) has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $927M and initial capital of $737M.
Southern Copper Corporation's La Caridad (LC) has reported Pre-Feasibility Study (PFS) results for the copper project in Mexico (Sonora, Nacozari region). The study headlines an after-tax net present value of $927M at a 10% discount rate. It reflects Southern Copper Corporation's (SCCO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $927M using a 10% discount rate. Initial capital expenditure is estimated at $737M. Economics are based on Copper at US$3.30/lb, Molybdenum at US$10.00/lb, Zinc at US$1.15/lb. (Reserve price Cu US$3.30/lb; Resource price Cu US$3.795/lb, Mo US$11.50/lb.).
Production and mine plan. The project envisions an open-pit operation. The open-pit strip ratio is 0.09.
Resources and ownership. The company holds a 98.14% interest in the project.
These figures are extracted from Southern Copper Corporation'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 |
|---|---|---|---|
| Probable | Leach 43 Mt; Mill 372 Mt; Waste 38 Mt; Total Material 452 Mt | — | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 817 Mt | 0.06% Total Cu | 0.5 Mt Cu |
| Inferred | 927 Mt | 0.06% Total Cu | 0.6 Mt Cu |
| Indicated | 6,455 Mt | 0.17% Total Cu, 0.026% Mo | 10.8 Mt Cu |
| Inferred | 4,039 Mt | 0.13% Total Cu, 0.025% Mo | 5.1 Mt Cu |
Our Analysis
- NPV after-tax
- $927M
higher than 58% of 31 projects we track
- Initial capex
- $737M
80% of NPV
costlier than 51% of 35 projects we track
- Study price assumption
- Copper at US$3.30/lb, Molybdenum at US$10.00/lb, Zinc at US$1.15/lb. (Reserve price Cu US$3.30/lb; Resource price Cu US$3.795/lb, Mo US$11.50/lb.)
- Spot copper today
- $6.52/lb
The PFS ranks this copper project in the upper-middle of the pack we track: a $927M after-tax NPV places it ahead of 58% of the 31 copper peers, while initial capex of $737M sits just below the median capital intensity for the 35 projects in our universe. That combination, a slightly above-average return for a slightly below-average build cost, is not an outlier in either direction. The rank tells an investor the project is competitive but not exceptional, and the PFS stage means those numbers carry roughly a plus or minus 25% band, enough to confirm the concept, not enough to underwrite a build.
The funding question, however, is where this project separates itself. The build cost is small relative to the company's US$145.05B market cap, and the NPV is well below that same figure, rough currency-adjusted. For a large-cap with 12 tracked projects in a diversified portfolio, a $737M initial outlay is not a financing event; it is a budget line item. That is the sharpest signal here, and it cuts both ways. It means the market has no reason to discount the equity for dilution or balance-sheet strain, but it also means the project's NPV, even at 80% of capex, is immaterial to a company of this size. The market is not pricing this asset as a needle-mover, and it may be right.
What matters next is not the IRR or the NPV, but whether the PFS economics survive the gap between the study's copper assumption of US$3.30/lb and today's spot of $6.52/lb. The study is conservative on price, which is a genuine upside cushion, but the jurisdiction, Sonora, Mexico, carries the usual permitting and social-license friction that a large-cap can absorb more easily than a junior. The single question that decides this project: can the company move from PFS to a build decision without the copper price doing the heavy lifting, because at this scale, the copper price is not the risk, execution is.
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.