Silver Sand PFS: $740M NPV, 37% IRR
New Pacific Metals Corp.'s Silver Sand in Potosí Department, 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 Potosí Department, 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 Ag. Economics are based on $24.00/oz silver (base case post-tax economics); sensitivity at $30.00/oz Ag; reserve cut-off based on US$23.00/oz Ag.
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 (LOM silver head grade). Metallurgical recovery averages 90%. The open-pit strip ratio is 3.3:1.
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
- IRR after-tax
- 37%
higher than 48% of 25 projects we track
- NPV after-tax
- $740M
higher than 68% of 28 projects we track
- Initial capex
- $358M
48% of NPV
costlier than 85% of 33 projects we track
- Payback
- 1.9yrs
slower than 60% of 15 projects we track
- Mine life
- 13yrs
- Discount rate
- 5%
- Study price assumption
- $24.00/oz silver (base case post-tax economics); sensitivity at $30.00/oz Ag; reserve cut-off based on US$23.00/oz Ag
- Spot silver today
- $67.15/oz
Against the 25 silver projects we track, this one's 37% after-tax IRR sits above only 48% of them: squarely mid-pack, with a payback of 1.9 years that beats just 40% of the 15 projects reporting one. The after-tax NPV of $740M ranks higher, above 68% of the 28 projects we track, so the value is concentrated in the back half of a 13-year mine life rather than in a standout return. For a company of this size, mid-pack is the honest read: nothing here separates it from the peer set, and the 15% after-tax hurdle most developers need to attract project finance is cleared with room, but not by a margin that changes the conversation.
What does change it is the scale of the build against the balance sheet. Initial capex of $358M is about 0.3x the company's entire US$1.14B market cap, and that is the constraint that matters most. The capital-light framing holds on one measure (48% of NPV, lower than 85% of the 33 silver peers), but a build worth roughly a third of equity cannot be financed quietly, and this is one of only 2 projects we track for the company, so there is no portfolio cushion to absorb a funding stumble. The PFS stage compounds this: a pre-feasibility estimate carries a wide band and is not yet a build decision, so the capex line will move before it is bankable.
The study's $24.00/oz base case sits far below today's $67.15/oz spot, which is where the upside lives, though the reserve cut-off at $23.00/oz and the $30.00/oz sensitivity bracket show how much of the economics depend on a price the study did not assume. Potosí adds jurisdictional weight that a mid-pack IRR does not offset. The question that decides this: can a small-cap fund a $358M build without diluting the equity story beyond recognition?
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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