La Plata Project Feasibility Study: $93M NPV, 25% IRR
Atico Mining Corporation's La Plata Project in Near Quito, Ecuador has a Feasibility Study outlining an after-tax NPV of $93M, an after-tax IRR of 25%, and initial capital of $91M. The proposed mine plan runs 8.1 years.
Atico Mining Corporation's La Plata Project has reported Feasibility Study results for the copper-gold (au, cu, zn, ag) project in Near Quito, Ecuador. The study headlines an after-tax net present value of $93M at a 5% discount rate. It reflects Atico Mining Corporation's (ATY.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $93M using a 5% discount rate. After-tax IRR is 25%. Initial capital expenditure is estimated at $91M. The study models a payback period of 3.4 years. All-in sustaining costs are pegged at 1.68 USD/lb Cu Eq. Economics are based on Reported 3-year trailing average: Au US$1,264/oz, Ag US$16.64/oz, Cu US$2.68/lb, Zn US$1.21/lb (resource estimate as of August 1 2023). NPV/IRR sensitivity in slide 12 shown against copper and gold prices..
Production and mine plan. The project envisions an underground operation. Life of mine is 8.1 years. Average head grade is Probable reserve 3.51% CuEq (2.28 g/t Au, 30.41 g/t Ag, 1.59% Cu, 2.18% Zn).
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Atico Mining Corporation's technical disclosures and reflect the most recent Feasibility Study 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 | 2,510 kt | CuEq 3.51%, Au 2.28 g/t, Ag 30.41 g/t, Cu 1.59%, Pb 0.36%, Zn 2.18% | Au 128.79 Koz, Ag 1.83 Moz, Cu 78.53 Mlbs, Pb 14.87 Mlbs, Zn 107.51 Mlbs |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 2,345 kt | CuEq 5.36%, Au 2.98 g/t, Ag 40 g/t, Cu 2.13%, Pb 0.49%, Zn 3.05% (Total, all domains) | Au 224 koz, Ag 2,993 koz, Cu 49.8 kt, Pb 11.5 kt, Zn 71.5 kt (Total) |
| Inferred | 380 kt | CuEq 3.16%, Au 1.75 g/t, Ag 38 g/t, Cu 0.96%, Pb 0.41%, Zn 2.29% (Total, all domains) | Au 21 koz, Ag 459 koz, Cu 3.6 kt, Pb 1.6 kt, Zn 8.7 kt (Total) |
Our Analysis
- IRR after-tax
- 25%
higher than 35% of 345 projects we track
- NPV after-tax
- $93M
higher than 11% of 442 projects we track
- Initial capex
- $91M
98% of NPV
costlier than 27% of 444 projects we track
- Payback
- 3.4yrs
slower than 69% of 280 projects we track
- Mine life
- 8.1yrs
- Discount rate
- 5%
- Study price assumption
- Reported 3-year trailing average: Au US$1,264/oz, Ag US$16.64/oz, Cu US$2.68/lb, Zn US$1.21/lb (resource estimate as of August 1 2023). NPV/IRR sensitivity in slide 12 shown against copper and gold prices.
- Spot copper today
- $6.78/lb
The financing question is not academic here; it is the whole ballgame. The initial capex of $91M is roughly 3.1 times this company's entire US$29M market cap. A nano-cap cannot quietly write that cheque, so the outcome hinges entirely on who else is willing to. Realistic sources are a strategic equity partner, a streaming or royalty arrangement, or a high-cost project finance package, each of which carries a different implication for existing holders. Equity dilution at this scale would be severe; debt would load the project with servicing costs against a relatively short 8.1-year mine life. The market cap also sits at roughly one-third of the project's NPV, a gap that either signals the market is waiting for proof of that financing plan or is skeptical it will arrive on reasonable terms.
The economics are solid enough to support the story but not so strong that they erase the funding risk. The 25% after-tax IRR clears the 20%-plus hurdle typically demanded of a higher-risk junior with little else in the portfolio, though it ranks in the lower half of the 345 projects we track. The after-tax NPV of $93M is modest, ranking above only 11% of peers, and the 3.4-year payback is unremarkable. The feasibility study, with its tighter plus-or-minus 15% band, does lend real weight to these figures, which is more than a scoping-level PEA would offer. The 5% discount rate sits at the low end of convention and flatters the headline NPV, so treat the absolute number with some skepticism. Notably, the study's copper price assumption of US$2.68/lb is far below today's US$6.78/lb spot, meaning the returns could be conservative if current prices hold through the build period.
The jurisdiction near Quito, Ecuador, adds a layer of execution and permitting risk that a feasibility study cannot price, and the company's thin portfolio of just two tracked projects leaves no buffer if this one stumbles. The single question that decides whether this works is not whether the orebody performs, but whether a partner or lender can be secured at a cost and structure that does not wipe out current shareholders. Until that is answered, the gap between the project's NPV and the company's market cap is as much a warning as an opportunity.
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.