La Plata VMS Project Feasibility Study: $93M NPV, 25% IRR
Atico Mining Corporation's La Plata VMS 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 VMS Project has reported Feasibility Study results for the copper-gold-zinc-silver project in Near Quito, Ecuador. The study headlines an after-tax net present value of $93M. It reflects Atico Mining Corporation's (ATY.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $93M. 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 Definitive Feasibility Study (2024) base case; sensitivity shown across copper $4.05-$7.50/lb and gold $1,920-$5,500/oz, including September 2026 prices. Appendix notes 3-year trailing average (US) dollar metal prices Au US$1,264/oz, Ag US$16.64/oz, Cu US$2.68/lb, Zn US$1.21/lb (used for reserve/resource estimate cut-offs)..
Production and mine plan. The project envisions an underground operation. Life of mine is 8.1 years. Average head grade is Au 2.3 g/t, Ag 30 g/t, Cu 1.6%, Zn 2.2% (Probable Reserves).
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 | 3.51% CuEq, 2.28 g/t Au, 30.41 g/t Ag, 1.59% Cu, 0.36% Pb, 2.18% Zn | 128.79 Koz Au, 1.83 Moz Ag, 78.53 Mlbs Cu, 14.87 Mlbs Pb, 107.51 Mlbs Zn |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 2,345 kt | 5.36% CuEq, 2.98 g/t Au, 40 g/t Ag, 2.13% Cu, 0.49% Pb, 3.05% Zn | 224 koz Au, 2,993 koz Ag, 49.8 kt Cu, 11.5 kt Pb, 71.5 kt Zn |
| Inferred | 380 kt | 3.16% CuEq, 1.75 g/t Au, 38 g/t Ag, 0.96% Cu, 0.41% Pb, 2.29% Zn | 21 koz Au, 459 koz Ag, 3.6 kt Cu, 1.6 kt Pb, 8.7 kt Zn |
Our Analysis
- IRR after-tax
- 25%
higher than 38% of 376 projects we track
- NPV after-tax
- $93M
higher than 11% of 537 projects we track
- Initial capex
- $91M
98% of NPV
costlier than 24% of 510 projects we track
- Payback
- 3.4yrs
slower than 68% of 304 projects we track
- Mine life
- 8.1yrs
- Study price assumption
- Definitive Feasibility Study (2024) base case; sensitivity shown across copper $4.05-$7.50/lb and gold $1,920-$5,500/oz, including September 2026 prices. Appendix notes 3-year trailing average (US) dollar metal prices Au US$1,264/oz, Ag US$16.64/oz, Cu US$2.68/lb, Zn US$1.21/lb (used for reserve/resource estimate cut-offs).
- Spot copper today
- $6.67/lb
The cheque is the story. A US$91M initial build against a US$30M market cap means this company cannot fund the project from its own balance sheet, and it cannot fund it quietly: the capex is roughly three times the value of the entire equity. That leaves a small number of realistic routes, none of them comfortable. A partner or offtaker carrying the bulk of construction in exchange for a large share of the asset; a streaming or royalty package sold early, which trades future margin for present capital; or equity issued at a nano-cap valuation, which is where existing holders take their real hit. This is one of two projects we track for the company, so there is no larger portfolio to cross-subsidise the build.
The economics support the case without settling it. The feasibility study is build-ready, a plus or minus 15% band, so these are the numbers that carry weight. After-tax NPV of US$93M against US$91M of capex, a 25% after-tax IRR and payback of 3.4 years. The IRR clears the roughly 15% threshold project financiers typically require, and the 20%-plus that a higher-risk junior with little else in the portfolio would need to attract money. But it ranks above only 38% of the 376 projects we track, and the NPV above just 11% of 537. Payback at 3.4 years is moderate, faster than only 32% of 304 peers. Nothing here is an outlier on quality.
Ecuador adds a jurisdiction premium to the cost of capital, and the study's copper sensitivity runs to US$7.50/lb against a live spot of US$6.67/lb, so the base case is not obviously stretched, though the range is wide. The question that decides this: can management bring in a partner or offtake on terms that fund US$91M without handing away so much of the project that the 25% return accrues to somebody else?
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.