Puna Operations (Chinchillas) Production Update: $136M NPV Over a 2.5-Year Mine Life
SSR Mining Inc.'s Puna Operations (Chinchillas) 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) has reported production guidance results for the silver (with lead and zinc by-products) 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 over period 2024-2026: $23.95 per ounce silver, $0.93 per pound lead, and $1.20 per pound 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, and 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, and 0.22% Zn | 20.7 Moz of silver, 112.8 Mlb of lead, and 20.5 Mlb of zinc |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 8.83 Mt | 112.1 g/t Ag, 1.01% Pb, and 0.43% Zn | 31.82 Moz of silver, 196.2 Mlb of lead, and 83.8 Mlb of zinc |
| Measured & Indicated (in situ) | 8.47 Mt | 113.8 g/t Ag, 1.03% Pb, and 0.42% Zn | 31.0 Moz of silver, 192.1 Mlb of lead, and 79.2 Mlb of zinc |
| Measured & Indicated (low grade stockpile) | 0.36 Mt | 70.0 g/t Ag, 0.51% Pb, and 0.58% Zn | 0.8 Moz Ag, 4.0 Mlb Pb, and 4.6 Mlb Zn |
| Inferred | 1.51 Mt | 93.5 g/t Ag, 0.72% Pb, and 0.45% Zn | 4.54 Moz of silver, 24.0 Mlb of lead, and 15.0 Mlb of zinc |
Our Analysis
- NPV after-tax
- $136M
higher than 20% of 521 projects we track
- Mine life
- 2.5yrs
- Study price assumption
- Realized metal price over period 2024-2026: $23.95 per ounce silver, $0.93 per pound lead, and $1.20 per pound zinc
- Spot silver today
- $60.41/oz
The headline change in this filing is not the numbers themselves but the fact that there is a filing at all: the same Rinconada asset that appeared as a 2021 feasibility study now reports as an operating mine, with a 2.5-year mine life. That is a genuine de-risking step, but it also reframes what the figures mean. These are actuals and near-term operating results, not a forward-looking study, and the short remaining life caps how much weight the asset can carry in any valuation.
The after-tax NPV of $136M sits well below the company's US$6.78B market cap, and the company holds this as one of 57 projects in a diversified portfolio. That context cuts both ways. A $136M asset inside a mid-cap of that size is immaterial to the equity story, which explains why the market may not have priced it. It also means there is no financing risk to speak of: the build is already done, and the company does not need to fund a construction programme against this NPV. The trade-off is that a small, short-life, by-product-dependent operation in the Puna region of Jujuy is unlikely to move the needle regardless of how well it runs.
The price assumption is where the returns get interesting. The study uses $23.95 per ounce silver, $0.93 per pound lead and $1.20 per pound zinc realised over 2024-2026, against a live silver spot of $60.41/oz. That gap is large, and it means the reported economics are built on a silver price well below where the metal trades today. If spot holds, the operating cash flow over the remaining 2.5 years could be materially better than the study implies. The question that decides whether this matters is whether the mine can extend its life beyond 2.5 years, because at that horizon even a strong silver price produces a brief, finite cash stream.
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.