La Caridad PFS: $1.20B NPV, $6.10B Capex
Southern Copper Corporation's La Caridad in Mexico, Sonora (Nacozari region) has a Pre-Feasibility Study (PFS) outlining a pre-tax NPV of $1.20B and initial capital of $6.10B. The mine plan runs 60 years at about 169 Mlb Cu/yr per year.
Southern Copper Corporation's La Caridad has reported Pre-Feasibility Study (PFS) results for the copper project in Mexico, Sonora (Nacozari region). The study headlines a pre-tax net present value of $1.20B at a 10% discount rate. It reflects Southern Copper Corporation's (SCCO) latest disclosed economics for the asset.
Economics. The pre-tax NPV is $1.20B using a 10% discount rate. Initial capital expenditure is estimated at $6.10B. Economics are based on Copper US$3.30/lb, Molybdenum US$10.00/lb, Zinc US$1.15/lb (economic analysis); Copper US$3.795/lb, Mo US$11.50/lb (resources); Copper US$3.30/lb, Mo US$10.00/lb (reserves).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 60 years. Average annual production is approximately 169 Mlb Cu/yr. Average head grade is 0.21% total Cu (mill feed). Metallurgical recovery averages 84%. The open-pit strip ratio is 0.13.
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 | 2,100 Mt (Mill) | 0.21% Cu, 0.028% Mo | 9,737 Mlbs Cu, 1,286 Mlbs Mo |
| Probable | 198 Mt (Leach) | 0.09% Cu | 395 Mlbs Cu |
| Probable | 297 Mt (Waste) | — | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 684 Mt (Leach) | 0.07% Cu | 0.5 Mt Cu |
| Indicated | 526 Mt (Leach) | 0.08% Cu | 0.4 Mt Cu |
| Indicated | 3,934 Mt (Mill) | 0.16% Cu, 0.028% Mo | 6.2 Mt Cu |
| Indicated | 2,974 Mt (Mill) | 0.14% Cu, 0.025% Mo | 4.0 Mt Cu |
Our Analysis
- NPV pre-tax
- $1.20B
higher than 71% of 31 projects we track
- Initial capex
- $6.10B
508% of NPV
costlier than 97% of 35 projects we track
- Mine life
- 60yrs
- Study price assumption
- Copper US$3.30/lb, Molybdenum US$10.00/lb, Zinc US$1.15/lb (economic analysis); Copper US$3.795/lb, Mo US$11.50/lb (resources); Copper US$3.30/lb, Mo US$10.00/lb (reserves)
- Spot copper today
- $6.52/lb
On the peer curve, this project is a study in averages. Its pre-tax NPV of $1.20B ranks above 71% of the 31 tracked copper projects, a solid but unremarkable position. The real tension sits in the capital account: initial capex of $6.10B is 508% of NPV, a capital intensity lower than just 3% of the 35 copper projects we track. That is the defining feature here, not the returns.
The funding math, however, flips the usual script. Against a US$145.05B market cap, the $6.10B build is small, and this is one of 12 projects in a diversified portfolio. A company this size can fund this quietly, which removes the dilution and financing overhang that typically compresses valuation gaps on smaller developers. The constraint is not whether they can pay for it, but whether they should prioritize it. At 508% of NPV, the capital is not being deployed efficiently relative to other options in the portfolio.
The PFS stage narrows the estimate to a roughly plus or minus 25% band, which is respectable but not a build decision. A 60-year mine life in Sonora, Mexico, offers long-duration optionality in a mining-friendly jurisdiction, though operational longevity also means decades of exposure to cost and policy drift. The study's copper price assumption of $3.30/lb sits well below the current live spot of $6.52/lb, so the economics carry meaningful upside if prices hold anywhere near current levels. The single question that decides this project is whether a large-cap with a dozen options sees the 508% capital intensity as a prudent use of its balance sheet, or as a low-ranking candidate for capital allocation.
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.