Spanish Mountain Gold Project - Spot Case (US$3,300/oz gold) PEA: C$2.30B NPV, 32% IRR
Spanish Mountain Gold Ltd.'s Spanish Mountain Gold Project - Spot Case (US$3,300/oz gold) in Canada, British Columbia (Cariboo District) has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of C$2.30B and an after-tax IRR of 32%. The mine plan runs 24.5 years at about 203000 oz Au per year.
Spanish Mountain Gold Ltd.'s Spanish Mountain Gold Project - Spot Case (US$3,300/oz gold) has reported Preliminary Economic Assessment (PEA) results for the gold project in Canada, British Columbia (Cariboo District). The study headlines an after-tax net present value of C$2.30B at a 5% discount rate. It reflects Spanish Mountain Gold Ltd.'s (SPA.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is C$2.30B using a 5% discount rate. After-tax IRR is 32%. The study models a payback period of 2 years. Economics are based on US$3,300/oz Au and US$36/oz Ag.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 24.5 years. Average annual production is approximately 203000 oz Au.
Resources and ownership. Mineral resources: M&I: 292.1 Mt @ 0.44 g/t Au for 4.16 Moz Au. The company holds a 100% interest in the project.
These figures are extracted from Spanish Mountain Gold Ltd.'s technical disclosures and reflect the most recent PEA 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
- 32%
higher than 34% of 90 projects we track
- NPV after-tax
- C$2.30B
- Payback
- 2yrs
- Mine life
- 24.5yrs
- Discount rate
- 5%
- Study price assumption
- US$3,300/oz Au and US$36/oz Ag
- Spot gold today
- $4,193.80/oz
The 32% after-tax IRR sits in the lower half of the 90 gold projects we track, but it clears the practical financing hurdle for a developer—especially a single-asset junior—by a wide margin. The 5% discount rate is at the low end of the reporting convention, which flatters the headline NPV; a higher, more conservative rate would compress that figure meaningfully. The NPV-to-market-cap ratio of roughly 13.7x is the key tension here: it either signals the market has not priced in the project’s long-term value, or it reflects skepticism around financing, permitting, or jurisdictional risk for a developer with a single asset.
Capital intensity is the primary risk. The C$2.30B NPV is large relative to market cap, meaning any equity financing to fund construction would be heavily dilutive. The study’s US$3,300/oz gold price sits well below the current spot of $4,193.80/oz, which provides a cushion against cost overruns or grade variability—but the 24.5-year mine life means long-dated cash flows are sensitive to future price cycles. The single most important watch-item is the financing plan: can the company secure project debt without excessive equity dilution, given the scale of capex relative to its current market value?
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.