Pegmont Lead-Zinc Project PEA: A$124M NPV, 24% IRR
Vendetta Mining Corp.'s Pegmont Lead-Zinc Project in Queensland, Australia has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of A$124M, an after-tax IRR of 24%, and initial capital of A$170M. The mine plan runs 10 years at about 124 Mlbs Pb per year.
Vendetta Mining Corp.'s Pegmont Lead-Zinc Project has reported Preliminary Economic Assessment (PEA) results for the lead-zinc project in Queensland, Australia. The study headlines an after-tax net present value of A$124M at a 8% discount rate. It reflects Vendetta Mining Corp.'s (VTT.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is A$124M using a 8% discount rate. After-tax IRR is 24%. Initial capital expenditure is estimated at A$170M, with life-of-mine sustaining capital of A$59M. The study models a payback period of 3.5 years. All-in sustaining costs are pegged at 0.71 AUD/lb payable Lead. Economics are based on Pb US$0.94/lb (base case), Zn US$1.09/lb (base case), Ag US$16.50/oz, AUD:USD $0.75.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 10 years. Average annual production is approximately 124 Mlbs Pb.
Resources and ownership. Mineral resources: Indicated: 5,758 kt at 6.5% Pb, 2.6% Zn, 11 g/t Ag; Inferred: 8,277 kt at 5.1% Pb, 2.8% Zn, 8 g/t Ag. The company holds a 100% interest in the project. Royalties and streams: No off-take encumbrances and $5m credit against future royalties.
These figures are extracted from Vendetta Mining Corp.'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
This project delivers a 24% after-tax IRR, placing it in the lower half of our tracked peer set. That return clears the practical financing hurdle for a single-asset junior developer, but does not offer a wide margin above the 20% threshold typically required for such risk profiles. The 8% discount rate used for NPV reporting is within standard convention, though it is relatively low; this flatters the headline NPV of A$124M, which stands at roughly 30.9x the company's market cap. That gap could indicate the market has not yet priced in the asset's potential, but it more likely reflects skepticism around the substantial funding required to realize it.
Capital intensity is the dominant risk here. Initial capex of A$170M represents 137% of NPV, a heavy burden for a developer with a small market cap. Financing this project will almost certainly require significant equity dilution or debt with onerous terms. The 3.5-year payback and 10-year mine life are moderate, offering some cash flow visibility, but the single most important watch-item is the company's ability to secure funding without destroying shareholder value.
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.