Puna Operations (Chinchillas and Pirquitas) Production Update: $136M NPV Over a 2.5-Year Mine Life
SSR Mining Inc.'s Puna Operations (Chinchillas and Pirquitas) in Puna region, northwestern Argentina, Province of Jujuy, Department of Rinconada has a production guidance outlining an after-tax NPV of $136M. The mine plan runs 2.5 years at about 6.3 Moz Ag per year.
SSR Mining Inc.'s Puna Operations (Chinchillas and Pirquitas) has reported production guidance results for the silver project in Puna region, northwestern Argentina, Province of Jujuy, Department of Rinconada. The study headlines an after-tax net present value of $136M at a 8% discount rate. It reflects SSR Mining Inc.'s (SSRM) latest disclosed economics for the asset.
Economics. The after-tax NPV is $136M using a 8% discount rate. All-in sustaining costs are pegged at 15.93 USD/oz Ag. Economics are based on Realized metal price 2024-2026: $23.95/oz silver, $0.93/lb lead, $1.20/lb zinc.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 2.5 years. Average annual production is approximately 6.3 Moz Ag. Average head grade is 154 g/t Ag, 1.23% Pb, 0.22% Zn. Metallurgical recovery averages 96.5%.
Resources and ownership. Royalties and streams: Royalties: 3% Net Profit; Export duty: 4.5% NSR; Export credit: 2.5% NSR.
These figures are extracted from SSR Mining Inc.'s technical disclosures and reflect the most recent Production Update 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 | 4.2 Mt | 154.4 g/t Ag, 1.23% Pb, 0.22% Zn | 20.7 Moz Ag, 112.8 Mlb Pb, 20.5 Mlb Zn |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 8.83 Mt | 112.1 g/t Ag, 1.01% Pb, 0.43% Zn | 31.82 Moz Ag, 196.2 Mlb Pb, 83.8 Mlb Zn |
| Measured & Indicated | 8.47 Mt | 113.8 g/t Ag, 1.03% Pb, 0.42% Zn | 31.0 Moz Ag, 192.1 Mlb Pb, 79.2 Mlb Zn |
| Measured & Indicated | 0.36 Mt | 70.0 g/t Ag, 0.51% Pb, 0.58% Zn | 0.8 Moz Ag, 4.0 Mlb Pb, 4.6 Mlb Zn |
| Inferred | 1.51 Mt | 93.5 g/t Ag, 0.72% Pb, 0.45% Zn | 4.54 Moz Ag, 24.0 Mlb Pb, 15.0 Mlb Zn |
| Measured & Indicated | 2.48 Mt | 300.9 g/t Ag, 5.85% Zn | 23.99 Moz Ag, 319 Mlb Zn |
| Inferred | 1.32 Mt | 194.9 g/t Ag, 7.28% Zn | 8.3 Moz Ag, 212 Mlb Zn |
Our Analysis
- NPV after-tax
- $136M
higher than 18% of 28 projects we track
- Mine life
- 2.5yrs
- Study price assumption
- Realized metal price 2024-2026: $23.95/oz silver, $0.93/lb lead, $1.20/lb zinc
- Spot silver today
- $67.15/oz
This asset sits near the bottom of the peer group: its $136M after-tax NPV ranks higher than just 18% of the 28 silver projects we track. That is the number to hold onto. For a company carrying a US$7.54B market cap, this is a small piece of a diversified portfolio of 20 projects, and the NPV is well below the market cap on a rough currency-adjusted basis. The gap is not a hidden mispricing waiting to be corrected; it reflects that this is one line item among many, not a company-defining asset.
The constraint that matters most is time. This is not a forward study but an operating mine, which removes development and permitting risk from the equation, yet it carries only 2.5 years of mine life. There is no long-duration cash flow stream here, and no study-stage optionality to argue about. What the mine produces over the next two and a half years is essentially what it is worth, so the investment case rests on near-term execution and on what the company does with the proceeds, not on a re-rating of the asset itself.
Jurisdiction cuts both ways. The Puna region of northwestern Argentina, in Jujuy's Rinconada department, is established mining country with operating precedent, which is why the figures deserve to be read as real rather than aspirational. But the study's realized silver price of $23.95/oz sits far below today's $67.15/oz spot, so the economics as published are conservative relative to the current market, and the 2.5-year life means the company captures that spread only briefly. The question that decides this project: does the operation actually deliver at these prices before the ore runs out?
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.