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, with life-of-mine sustaining capital of $85M. 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 Silver Sand after-tax economics based on $24/oz silver (base case), also shown $30/oz; PFS parameters: Ag price $23.00/oz for reserves, $22.50/oz Ag for resources; cut-off 27 g/t Ag inside AMC, 29 g/t outside; 91% Ag recovery; 6% royalty within AMC, 12% outside; 99% payable 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.
Our Analysis
- IRR after-tax
- 37%
higher than 50% of 24 projects we track
- NPV after-tax
- $740M
higher than 70% of 27 projects we track
- Initial capex
- $358M
48% of NPV
costlier than 87% of 30 projects we track
- Payback
- 1.9yrs
slower than 57% of 14 projects we track
- Mine life
- 13yrs
- Discount rate
- 5%
- Study price assumption
- Silver Sand after-tax economics based on $24/oz silver (base case), also shown $30/oz; PFS parameters: Ag price $23.00/oz for reserves, $22.50/oz Ag for resources; cut-off 27 g/t Ag inside AMC, 29 g/t outside; 91% Ag recovery; 6% royalty within AMC, 12% outside; 99% payable silver
- Spot silver today
- $67.16/oz
Silver Sand lands squarely in the middle of the pack we track: a 37% after-tax IRR ranks above half of the 24 silver projects in our database, and the $740M NPV sits higher than 70% of the 27 peers. That is not an outlier profile, but it is a solidly above-median one, and the 1.9-year payback is genuinely fast. The practical question is financing, and here the numbers are unusually comfortable: the $358M initial capex is about 0.3x the company's US$1.27B market cap, small enough to fund without existential dilution, and this is one of only two projects we track for a company that is not a single-asset junior. A developer with this balance sheet does not need the 15% after-tax hurdle that constrains smaller peers; it can underwrite a build at a lower cost of capital, which makes the 37% IRR a credible return rather than a theoretical one.
The constraint that matters most is not capital but jurisdiction. Bolivia carries a heavier political and regulatory risk profile than most mining destinations we cover, and that risk is not fully captured in a PFS that narrows estimates to roughly a plus or minus 25% band. The study's base case uses $24/oz silver, far below the current spot of $67.16/oz, so the economics have substantial cushion against both operational slippage and a sharp price correction. The 5% discount rate sits at the low end of reporting convention and flatters the headline NPV, but with spot at nearly three times the base case, even a more demanding rate would leave the project comfortably positive.
What decides whether Silver Sand works is not the grade, the payback, or the capex, it is whether the company can convert a technically sound PFS in a challenging jurisdiction into a financed build without the market discounting the asset for the political risk embedded in the location. The NPV at roughly 0.6x market cap leaves room for re-rating if execution proceeds, but it also means the market has already priced in some skepticism. Watch the financing terms and the permitting path: if those come through on schedule, the rank versus peers understates the opportunity; if they slip, the fast payback will not compensate for a stalled construction timeline.
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.