Silver Sand PFS: $740M NPV, 37% IRR
Silvercorp Metals Inc.'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.
Silvercorp Metals Inc.'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 Silvercorp Metals Inc.'s (SVM.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. All-in sustaining costs are pegged at 11 USD/oz. Economics are based on Ag $24/oz.
Production and mine plan. Life of mine is 13 years. Average annual production is approximately 12 Moz Ag.
Resources and ownership. The company holds a 28% interest in the project.
These figures are extracted from Silvercorp Metals Inc.'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
A 37% after-tax IRR places this silver project in the upper half of our tracked peer group, well above the practical financing hurdle of ~15% (and the 20%+ threshold for single-asset juniors). The 5% discount rate used for NPV reporting is at the low end of convention, which flatters the headline NPV of $740M; a higher, more conservative rate would shrink that figure materially. The NPV sits at roughly 0.3x market cap, which cuts two ways: it could mean the market has not yet priced in the asset, or it could signal skepticism around execution risk, jurisdiction, or the financing path.
Capital intensity is low at 48% of NPV ($358M initial capex), reducing funding risk relative to the asset's value, though the absolute sum still requires meaningful equity or debt for a developer. The study's $24/oz silver price assumption is dramatically below the current live spot of $65.50/oz, implying significant upside if prices hold, but also raising the question of whether the study's cost and margin assumptions remain realistic at today's price level. The single most important watch-item is the project's ability to secure financing and permits without material dilution, given the gap between NPV and market cap.
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.