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 187 koz AuEq (LOM avg); 266 koz AuEq/yr (Yrs 1-3) per year.
Thesis Gold Inc.'s Lawyers-Ranch has reported Pre-Feasibility Study (PFS) results for the gold 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.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 15 years. Average annual production is approximately 187 koz AuEq (LOM avg); 266 koz AuEq/yr (Yrs 1-3). Average head grade is 1.31 g/t AuEq LOM; 1.68 g/t AuEq first 5 yrs. Metallurgical recovery averages 92.8%.
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. No debt, no streams..
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 | — | 1.21 g/t AuEq | 4.6 Moz AuEq |
| Measured & Indicated | — | 25.9 g/t Ag | 97.9 Moz Ag |
| Inferred | — | — | 0.6 Moz AuEq |
| Inferred | — | — | 7.7 Moz Ag |
Our Analysis
- IRR after-tax
- 54.4%
higher than 74% of 121 projects we track
- NPV after-tax
- C$2.37B
higher than 90% of 194 projects we track
- Initial capex
- C$736M
31% of NPV
costlier than 83% of 176 projects we track
- Payback
- 1.1yrs
slower than 15% of 105 projects we track
- Mine life
- 15yrs
- Discount rate
- 5%
- Study price assumption
- Base Case: Au US$2,900/oz | Ag US$35/oz
- Spot gold today
- $4,129.60/oz
A C$736M build against a US$580M market capitalisation is the fact that governs everything else here. The company cannot fund this from its own balance sheet, and it is the only asset we track for them, so there is no portfolio cash flow to lean on. That leaves the usual paths: a partner or acquirer carrying the construction bill, a large equity raise, or streaming and debt stacked on top. Each of those transfers value away from current holders, and at roughly 0.9x market cap the dilution in a straight equity solution would be severe. Whoever writes the cheque will set the terms, and existing shareholders should assume they are not the ones setting them.
The economics themselves are strong enough to make that conversation possible. An after-tax NPV of C$2.37B against that build cost ranks above 90% of the gold projects we track, the 54.4% after-tax IRR sits above 74% of 121 peers, and payback of 1.1 years is faster than 85% of the 105 projects we compare. Against the roughly 15% hurdle for project finance, and the 20%-plus a single-asset junior typically needs to be financed at all, the return clears with room. But this is a pre-feasibility study, not a build decision: the estimate carries a plus or minus 25% band, and the 5% discount rate used to report the NPV is a convention rather than a test of anything.
British Columbia is a mining-friendly jurisdiction with a permitting process that is slow, consultative and genuinely capable of delaying a schedule, which matters more for a single-asset developer than for a diversified producer. The study's US$2,900/oz gold assumption sits well below today's live spot of US$4,129.60/oz, so the headline numbers are not leaning on an optimistic price. The question that decides this is not the IRR. It is who funds C$736M, and on what terms.
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.
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