Salares Norte PFS: $1.47B NPV Over a 11-Year Mine Life
Gold Fields Limited's Salares Norte in Atacama Region (Region III), Chile has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $1.47B. The proposed mine plan runs 11 years.
Gold Fields Limited's Salares Norte has reported Pre-Feasibility Study (PFS) results for the gold project in Atacama Region (Region III), Chile. The study headlines an after-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 after-tax NPV is $1.47B using a 8.7% discount rate. Economics are based on Base case reserve gold price $1,500/oz and silver price $17.50/oz; mineral resources based on $1,720/oz gold and $20/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: 2% NSR royalty to Franco-Nevada on Rio Baker 1, 2 and 3 mining concessions (MGFSN may purchase one quarter for $4 million); NSR royalty on Salares Norte with right to purchase one half for $6 million within two years of commercial production.
These figures are extracted from Gold Fields Limited's technical disclosures and reflect the most recent PFS 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 |
| Probable | 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 after-tax
- $1.47B
higher than 69% of 192 projects we track
- Mine life
- 11yrs
- Study price assumption
- Base case reserve gold price $1,500/oz and silver price $17.50/oz; mineral resources based on $1,720/oz gold and $20/oz silver
- Spot gold today
- $4,216.30/oz
Against the 192 gold projects we track, this one's after-tax NPV of $1.47B ranks above 69% of them. That is a respectable position, not a standout: it sits in the upper third of a crowded field, and investors should read it as a solid mid-tier asset rather than a portfolio-defining one. The number itself is not the interesting part. What matters is that it comes from a pre-feasibility study, which narrows the estimate to roughly a plus or minus 25% band but is not yet a build decision. An 11-year mine life, unchanged from the prior filing, tells you the operating profile is stable but not expanding.
The constraint that matters most is not in the returns at all. This is a large-cap, at a US$32.80B market cap, with this project sitting as one of 15 in a diversified portfolio. The after-tax NPV is well below that market cap on a rough currency-adjusted basis. That cuts both ways: it can mean the market has not priced the asset, or that the market is skeptical on financing, dilution, permitting, jurisdiction or commodity risk. With a diversified major, the second read is more likely, because a single project of this size simply does not move the needle.
The study's base case assumes $1,500/oz gold and $17.50/oz silver, against a current live spot of $4,216.30/oz. That gap is wide, and it is the single most important thing to weigh: the economics were built on a price far below today's market, so the headline NPV may understate what the asset could deliver if spot holds, or it may simply reflect a disciplined reserve assumption. The jurisdiction, Chile's Atacama Region, is a known mining address, which helps. The deciding question is whether this pre-feasibility study advances to a feasibility and a build decision, because until it does, the $1.47B is an estimate, not a plan.
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.
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