San Agustin Mine (PEA case from Technical Report Highlights) Feasibility Study: $12M NPV, 156% IRR
Heliostar Metals Ltd.'s San Agustin Mine (PEA case from Technical Report Highlights) in Durango, Mexico has a Feasibility Study outlining an after-tax NPV of $12M, an after-tax IRR of 156%, and initial capital of $40M.
Heliostar Metals Ltd.'s San Agustin Mine (PEA case from Technical Report Highlights) has reported Feasibility Study results for the gold project in Durango, Mexico. The study headlines an after-tax net present value of $12M at a 5% discount rate. It reflects Heliostar Metals Ltd.'s (HSTR.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $12M using a 5% discount rate. After-tax IRR is 156%. Initial capital expenditure is estimated at $40M. The study models a payback period of 1.2 years. All-in sustaining costs are pegged at 1990 USD/GEO. Economics are based on Base case $2,100/oz Au; $3,000/oz upside.
Production and mine plan. The project envisions an open-pit operation. Average annual production is approximately 37.1 koz Au.
Resources and ownership. Mineral reserves: 68 koz Au @ 0.29 g/t. The company holds a 100% interest in the project. Royalties and streams: 0%.
These figures are extracted from Heliostar Metals Ltd.'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.
Our Analysis
- IRR after-tax
- 156%
higher than 94% of 90 projects we track
- NPV after-tax
- $12M
- Initial capex
- $40M
333% of NPV
- Payback
- 1.2yrs
- Discount rate
- 5%
- Study price assumption
- Base case $2,100/oz Au; $3,000/oz upside
- Spot gold today
- $4,193.80/oz
The 156% after-tax IRR places this project in the top decile of the 90 gold peers we track, well above the 15–20% threshold developers need for financing. The 1.2-year payback is exceptionally fast, reducing capital-at-risk. However, the headline NPV of $12M is flattered by a 5% discount rate—the low end of reporting convention, signaling minimal conservatism in the study. The real tension lies in capital intensity: $40M initial capex equals 333% of NPV, a heavy burden for a junior whose market cap exceeds the NPV by a wide margin. That gap cuts both ways—it could mean the market has not priced the asset, or it reflects skepticism on funding, dilution, or jurisdiction risk.
The study’s base case of $2,100/oz gold sits well below today’s spot of $4,193.80/oz, implying material upside to returns if prices hold. Yet the single most important risk is financing: a $40M build for a developer with a market cap well above NPV suggests either significant dilution or a reliance on debt that may not be available at reasonable terms. The fast payback mitigates this, but does not eliminate it.
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.