Salares Norte Feasibility Study: $1.47B NPV, $155M Capex
Gold Fields Limited's Salares Norte in Chile, Atacama Region has a Feasibility Study outlining a pre-tax NPV of $1.47B and initial capital of $155M. The proposed mine plan runs 11 years.
Gold Fields Limited's Salares Norte has reported Feasibility Study results for the gold (with silver by-product) project in Chile, Atacama Region. The study headlines a pre-tax net present value of $1.47B at a 8.7% discount rate. It reflects Gold Fields Limited's (GFI) latest disclosed economics for the asset.
Economics. The pre-tax NPV is $1.47B using a 8.7% discount rate. Initial capital expenditure is estimated at $155M. Economics are based on Resource estimate at $1,720/oz gold and $20/oz silver; Reserve at $1,500/oz gold and $17.50/oz silver.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 11 years.
Resources and ownership. The company holds a 100% interest in the project. Royalties and streams: Mining concessions subject to 2% NSR royalty payable to Franco-Nevada; MGFSN right to purchase one half of NSR royalty for $6M within two years following commencement of commercial production. Rio Baker 1,2,3 concessions subject to 2% NSR royalty payable to Franco-Nevada, with right to purchase one quarter for $4M..
These figures are extracted from Gold Fields Limited'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 |
|---|---|---|---|
| Probable | 15,173 kt | 5.4 g/t Au, 67.14 g/t Ag | 2,622 koz Au, 32,752 koz Ag |
| Probable | 4,647 kt | 5.3 g/t Au, 88.75 g/t Ag | 793 koz Au, 13,261 koz Ag |
| Total | 19,821 kt | 5.4 g/t Au, 72.21 g/t Ag | 3,415 koz Au, 46,013 koz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | 2,892 kt | 2.3 g/t Au, 30.5 g/t Ag | 216 koz Au, 2,832 koz Ag |
| Inferred | 210 kt | 1.5 g/t Au, 8.3 g/t Ag | 10 koz Au, 56 koz Ag |
Our Analysis
- NPV pre-tax
- $1.47B
higher than 78% of 360 projects we track
- Initial capex
- $155M
11% of NPV
costlier than 39% of 376 projects we track
- Mine life
- 11yrs
- Study price assumption
- Resource estimate at $1,720/oz gold and $20/oz silver; Reserve at $1,500/oz gold and $17.50/oz silver
- Spot gold today
- $4,139.10/oz
A pre-tax NPV of $1.47B places this asset above 78% of the 360 projects we track, and a $155M initial capex that is 11% of NPV is lower than 61% of the 376 projects in our database. That combination is genuinely uncommon: most projects with this NPV rank carry a build cost several times larger. The catch is the 11-year mine life. This is not a generational deposit; it is a mid-life, capital-efficient producer that needs to convert its feasibility-stage certainty into cash flow quickly, because the clock starts running the day construction ends.
Chile's Atacama Region is a mining-friendly jurisdiction, and the feasibility study designation matters here. This is a build-ready estimate within a typical plus or minus 15% band, not a scoping-level concept, so the $155M figure deserves real weight. Funding risk is the constraint that matters most: a $155M build against a $1.47B NPV is the kind of ratio a company can finance without catastrophic dilution, and the capital-light profile means the project does not need a bull market in credit to proceed. The two-sided read on the valuation gap is that the market may be discounting the 11-year life, or it may simply be waiting for the production-stage de-risking to show up in cash flow.
The study's price assumptions sit far below the current $4,139.10/oz gold spot, which is a double-edged sword. The reserve base at $1,500/oz gold is conservative, and the resource at $1,720/oz leaves obvious upside if prices hold, but a feasibility study priced at less than half of today's spot also signals that the project economics are not dependent on a commodity spike to work. The single question that decides whether this works is whether the 11-year mine life can be extended, because a capital-light, mid-life asset in a top jurisdiction is only as durable as the ounces it has left to mine.
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.