Orcopampa Feasibility Study: $-30M NPV Over a 3-Year Mine Life
Compania de Minas Buenaventura S.A.A.'s Orcopampa in Peru has a Feasibility Study outlining an after-tax NPV of $-30M. The proposed mine plan runs 3 years.
Compania de Minas Buenaventura S.A.A.'s Orcopampa has reported Feasibility Study results for the gold project in Peru. The study headlines an after-tax net present value of $-30M at a 6.04% discount rate. It reflects Compania de Minas Buenaventura S.A.A.'s (BVN) latest disclosed economics for the asset.
Economics. The after-tax NPV is $-30M using a 6.04% discount rate. Economics are based on Gold price of 1,600 US$/oz, Silver price of 25.00 US$/oz (mineral reserves); US$27.5/oz for silver and US$1,760/oz for gold (NSR assessment).
Production and mine plan. The project envisions an underground operation. Life of mine is 3 years. Metallurgical recovery averages 97%.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: 0.915 royalty factor in NSR formula; royalties applicable on reported mineral reserves areas corresponding to mining rights ownership.
These figures are extracted from Compania de Minas Buenaventura S.A.A.'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 |
|---|---|---|---|
| Proven | 0 kt | 0.00 g/t Au, 0.00 oz/t Ag | — |
| Probable | 517 kt | 9.37 g/t Au, 0.57 oz/t Ag | — |
| Proven & Probable | 517 kt | 9.37 g/t Au, 0.57 oz/t Ag | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Indicated | 345 kt | 9.97 g/t Au, 0.76 oz/t Ag | 110,425 Au Oz |
| Measured & Indicated | 345 kt | 9.97 g/t Au, 0.76 oz/t Ag | 110,425 Au Oz |
| Inferred | 373 kt | 10.13 g/t Au, 0.49 oz/t Ag | 121,420 Au Oz |
Our Analysis
- NPV after-tax
- $-30M
higher than 0% of 124 projects we track
- Mine life
- 3yrs
- Study price assumption
- Gold price of 1,600 US$/oz, Silver price of 25.00 US$/oz (mineral reserves); US$27.5/oz for silver and US$1,760/oz for gold (NSR assessment)
- Spot gold today
- $4,139.10/oz
A feasibility study that returns a negative after-tax NPV is not a project awaiting a financing decision; it is a project awaiting a fundamental change in its economics. At feasibility-level confidence, with a build-ready estimate carrying a plus or minus 15% band, this outcome carries real weight. The study does not pay back its own capital, which means the question is not how to fund it, but whether it should be built at all. A three-year mine life leaves no room to absorb cost overruns or operational hiccups, and the negative return ranks this asset above none of the 124 gold projects we track.
Peru is a significant mining jurisdiction, but that does not rescue a negative NPV. The numbers must change first. The study's gold price assumption sits far below today's live spot, which is the most obvious lever. At current prices, the reserve case would look materially different, but the study's own NSR assessment at a higher gold price still failed to clear the hurdle. That gap between the study's price deck and the market suggests the project's viability is hostage to a price environment the study did not model. A partner or a lower capex figure could also shift the math, but those are negotiating outcomes, not engineering certainties.
The single question that decides this project is whether the reserve case can be re-run at a price deck closer to today's market and still support a build. If it cannot, this is a production-stage asset with a negative return and a three-year life, which is a closure plan, not a development story. The company's diversified portfolio of 16 tracked projects spreads the risk, but it does not change the arithmetic on this one.
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.