Silver Sand PFS: $740M NPV, 37% IRR
New Pacific Metals Corp.'s Silver Sand in Bolivia has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $740M, an after-tax IRR of 37%, and initial capital of $358M. The mine plan runs 13 years at about 12 Moz Ag per year.
New Pacific Metals Corp.'s Silver Sand has reported Pre-Feasibility Study (PFS) results for the silver project in Bolivia. The study headlines an after-tax net present value of $740M at a 5% discount rate. It reflects New Pacific Metals Corp.'s (NUAG.TO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $740M using a 5% discount rate. After-tax IRR is 37%. Initial capital expenditure is estimated at $358M. The study models a payback period of 1.9 years. All-in sustaining costs are pegged at 10.69 USD/oz. Economics are based on $24/oz silver (base case); also shown $30/oz silver.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 13 years. Average annual production is approximately 12 Moz Ag. Average head grade is 105 g/t Ag. Metallurgical recovery averages 90%. The open-pit strip ratio is 3.3:1.
Resources and ownership. Royalties and streams: 6% royalty within AMC, 12% royalty outside AMC.
These figures are extracted from New Pacific Metals Corp.'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 |
|---|---|---|---|
| Proven | 15 Mt | 121 g/t Ag | 59 Moz Ag |
| Probable | 37 Mt | 98 g/t Ag | 117 Moz Ag |
| Proven & Probable | 52 Mt | 105 g/t Ag | 175 Moz Ag |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 15 Mt | 131 g/t Ag | 63 Moz Ag |
| Indicated | 39 Mt | 110 g/t Ag | 139 Moz Ag |
| Measured & Indicated | 54 Mt | 116 g/t Ag | 202 Moz Ag |
| Inferred | 5 Mt | 88 g/t Ag | 13 Moz Ag |
Our Analysis
A 37% after-tax IRR places this project in the upper half of the 22 silver developers we track and well above the 20% threshold typically required for a single-asset junior. The 5% discount rate used to derive the $740M NPV is at the low end of reporting convention, which flatters the headline number; a more standard rate would compress that value. The NPV sits roughly in line with the company’s market cap, which cuts both ways—the market may not be pricing in the project’s potential, or it may be discounting for financing, jurisdictional, or execution risk.
The capital intensity is low at 48% of NPV, reducing funding risk, and the 1.9-year payback is fast. However, the base-case price assumption of $24/oz silver sits well below the current spot of $56.33/oz, suggesting material upside if prices hold—but also that the study’s returns are not stress-tested for a price decline. The single most important watch-item is Bolivia’s jurisdiction, which carries higher political and regulatory risk relative to mining-friendly peers; this alone may explain the market’s caution.
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.