La Caridad Resource Estimate: $2.00B NPV, $4.50B Capex
Southern Copper Corporation's La Caridad in Mexico has a Mineral Resource Estimate outlining a pre-tax NPV of $2.00B and initial capital of $4.50B. The mine plan runs 58 years at about 76 Kt Cu/yr per year.
Southern Copper Corporation's La Caridad has reported Mineral Resource Estimate results for the copper project in Mexico. The study headlines a pre-tax net present value of $2.00B at a 10% discount rate. It reflects Southern Copper Corporation's (SCCO) latest disclosed economics for the asset.
Economics. The pre-tax NPV is $2.00B using a 10% discount rate. Initial capital expenditure is estimated at $4.50B. Economics are based on Copper at US$3.30/lb, Molybdenum at US$10.00/lb, Zinc at US$1.15/lb.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 58 years. Average annual production is approximately 76 Kt Cu/yr. Average head grade is 0.3% total copper. The open-pit strip ratio is 1.18.
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 Resource Estimate 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 | 272 Mt | 0.28% Cu, 0.042% Mo | 770 Kt Cu, 114 Kt Mo |
| Probable | 1,671 Mt | 0.21% Cu, 0.036% Mo | 3,460 Kt Cu, 606 Kt Mo |
| Proven & Probable (Total La Caridad mill feed) | 1,943 Mt | 0.22% Cu, 0.036% Mo | 4,230 Kt Cu, 720 Kt Mo |
| Proven (Pilares) | 22.6 Mt | 0.80% Cu, 0.006% Mo | 181 Kt Cu, 1 Kt Mo |
| Probable (Pilares) | 22 Mt | — | — |
| Proven & Probable (Total, all destinations) | 2,661 Mt | — | 4,985 Kt Cu |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Total (La Caridad+Pilares) Measured | 94 Mt | — | 137 Kt Cu, 23 Kt Mo |
| Total (La Caridad+Pilares) Indicated | 2,279 Mt | — | 3,266 Kt Cu, 470 Kt Mo |
| Total (La Caridad+Pilares) Measured & Indicated | 2,373 Mt | — | 3,403 Kt Cu, 493 Kt Mo |
| Total (La Caridad+Pilares) Inferred | 5,660 Mt | — | 6,986 Kt Cu, 1,273 Kt Mo |
Our Analysis
- NPV pre-tax
- $2.00B
higher than 83% of 36 projects we track
- Initial capex
- $4.50B
225% of NPV
costlier than 87% of 39 projects we track
- Mine life
- 58yrs
- Study price assumption
- Copper at US$3.30/lb, Molybdenum at US$10.00/lb, Zinc at US$1.15/lb
- Spot copper today
- $6.47/lb
The direction of travel here is unmistakable: versus the 2022 PFS, initial capex has fallen 26% and mine life has contracted 3%, while the project has advanced to Resource Estimate level. That combination is a genuine improvement on the cost side, but it arrives with a caveat: a resource estimate carries no economic study, so the economics shown are indicative at best. The market is being asked to take the trajectory on faith, not on a feasibility-grade foundation.
What the current numbers show is a large, long-dated copper asset in Mexico with a 58-year mine life and a pre-tax NPV of $2.00B, which ranks higher than 83% of the 36 copper projects we track. The build cost is the sharper lens: initial capex of $4.50B is 225% of NPV, a capital-intensive profile that ranks lower than 13% of the 39 copper projects we track. Yet the funding risk is muted by the owner's scale. The build cost is small relative to the company's US$143.25B market cap, and this is one of 21 projects in a diversified portfolio. A company this size can carry this spend without existential strain, which is the single most important de-risking fact in the file.
The price deck deserves scrutiny. The study assumes copper at US$3.30/lb, while today's live spot sits at $6.47/lb. That gap is a two-sided coin: it means the NPV is built on conservative pricing and could look better under current conditions, but it also means the project's economics are being tested against a price that has roughly doubled since the assumption was set. The valuation gap between NPV and market cap cuts both ways too: the market may not be crediting the asset, or it may be discounting the long timeline and the lack of an economic study. The deciding question is whether the next stage of study converts that 26% capex reduction into a feasibility-grade number, because until then, the trajectory is promising but unproven.
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.