Mercur Gold Project PEA: $295M NPV, $208M Capex
Revival Gold Inc.'s Mercur Gold Project in Utah, USA (Tooele & Utah Counties) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $295M and initial capital of $208M.
Revival Gold Inc.'s Mercur Gold Project has reported Preliminary Economic Assessment (PEA) results for the gold project in Utah, USA (Tooele & Utah Counties). The study headlines an after-tax net present value of $295M at a 5% discount rate. It reflects Revival Gold Inc.'s (RVG.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $295M using a 5% discount rate. Initial capital expenditure is estimated at $208M. All-in sustaining costs are pegged at 1385 USD/oz.
Production and mine plan. The project envisions a heap leach (open-pit) operation.
These figures are extracted from Revival Gold Inc.'s technical disclosures and reflect the most recent PEA 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.
Our Analysis
- NPV after-tax
- $295M
higher than 39% of 179 projects we track
- Initial capex
- $208M
71% of NPV
costlier than 48% of 165 projects we track
- Spot gold today
- $4,173.60/oz
A US$194M micro-cap proposing to spend US$208M to build a gold mine in Utah is not really a permitting story or a grade story. It is a financing story. The initial capital bill is roughly 1.1 times the company's entire equity value, which means this cannot be funded quietly from the existing balance sheet or a modest debt package. Someone has to write a cheque larger than the company itself, and the realistic candidates are a partner buying into the asset, a streaming or royalty deal against future production, or equity issued at whatever price the market offers. Each of those routes takes something from current holders: a share of the upside, a claim on the revenue, or a materially larger share count.
The economics are not the problem. An after-tax NPV of US$295M sits about 1.5 times the market cap and ranks ahead of 39% of the 179 gold projects we track. Capex at 71% of NPV is moderately capital-intensive by the standards of the 165 gold projects in our set, and lighter than 52% of them. On the study's own numbers, the asset carries its weight.
The caveats are the study stage and the price deck. This is a scoping-level PEA: it may lean on inferred material, and its capital estimate typically carries a plus or minus 50% band, which on a US$208M build is a very wide range around the number that matters most. Gold at US$4,173.60/oz spot is doing a lot of work in a US$295M NPV. Utah is a favourable place to permit and build, and that helps, but it does not solve the cheque. The question that decides this: can management fund a build worth more than the company without handing away the economics that make it worth building?
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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