Lawyers-Ranch PFS: C$2.37B NPV, 54.4% IRR
Thesis Gold Inc.'s Lawyers-Ranch in British Columbia, Canada (Toodoggone District) has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of C$2.37B, an after-tax IRR of 54.4%, and initial capital of C$736M. The mine plan runs 15 years at about 187000 oz AuEq/yr per year.
Thesis Gold Inc.'s Lawyers-Ranch has reported Pre-Feasibility Study (PFS) results for the gold & silver (au-ag) project in British Columbia, Canada (Toodoggone District). The study headlines an after-tax net present value of C$2.37B at a 5% discount rate. It reflects Thesis Gold Inc.'s (TAU.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$2.37B using a 5% discount rate. After-tax IRR is 54.4%. Initial capital expenditure is estimated at C$736M, with life-of-mine sustaining capital of C$789M. The study models a payback period of 1.1 years. All-in sustaining costs are pegged at 1185 USD/oz AuEq. Economics are based on Base Case: Au US$2,900/oz | Ag US$35/oz. Au:Ag 1:80; Au:Cu 1:8495 equivalency..
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 15 years. Average annual production is approximately 187000 oz AuEq/yr. Average head grade is 1.68 g/t AuEq (First 5 yrs); 1.31 g/t AuEq (LOM).
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Royal Gold NSRs: 0.5% at Lawyers, 2% at Ranch.
These figures are extracted from Thesis Gold Inc.'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 |
|---|---|---|---|
| Proven & Probable | — | — | 3.2 Moz AuEq |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | — | — | 4.6 Moz AuEq at 1.21 g/t |
| Measured & Indicated | — | — | 97.9 Moz Ag at 25.9 g/t |
| Inferred | — | — | 0.6 Moz AuEq |
| Inferred | — | — | 7.7 Moz Ag |
Our Analysis
- IRR after-tax
- 54.4%
higher than 81% of 345 projects we track
- NPV after-tax
- C$2.37B
higher than 88% of 442 projects we track
- Initial capex
- C$736M
31% of NPV
costlier than 73% of 444 projects we track
- Payback
- 1.1yrs
slower than 12% of 280 projects we track
- Mine life
- 15yrs
- Discount rate
- 5%
- Study price assumption
- Base Case: Au US$2,900/oz | Ag US$35/oz. Au:Ag 1:80; Au:Cu 1:8495 equivalency.
- Spot gold today
- $4,444.40/oz
The valuation gap here is the story, and it cuts both ways. The project’s after-tax NPV of C$2.37B is roughly 2.3 times the company’s entire US$765M market cap. That is either a signal that the market has not priced in the asset’s potential, or a sign that investors doubt a junior with no other tracked projects can finance and permit a build of this magnitude. The truth likely sits somewhere between the two, and the jurisdiction is the lens through which to read it: British Columbia is a mining-friendly, stable environment, which lends credibility to the numbers, but it does not erase the financing hurdle.
That hurdle is the sharpest risk in this profile. Initial capex of C$736M is about 0.7 times the company’s entire market cap, a large fraction that a small-cap cannot quietly absorb. The project is capital-light relative to its NPV, at 31%, and that ratio is lower than the average of the 444 projects we track, but that framing flatters the build cost. The real question is whether the company can raise roughly three-quarters of its own equity value in construction funding without crippling dilution. The 54.4% after-tax IRR ranks above 81% of the 345 projects we track, and it clears the practical hurdle for a higher-risk junior, which typically needs 20% or more to attract project finance. The 1.1-year payback, faster than 88% of comparable projects, supports that return profile.
The study is a PFS, not a feasibility study, so the estimate carries a wider confidence band. The base case assumes gold at US$2,900/oz, well below today’s spot of $4,444.40/oz, which suggests the returns could be conservative if prices hold. The 5% discount rate is at the low end of reporting convention and flatters the headline NPV, but it is not an investment hurdle. The single question that decides this project is whether the company can secure financing for a C$736M build at a scale that does not destroy existing shareholders, because the asset’s value is only real if it gets built.
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.