Tambomayo PFS: $41M NPV, $17M Capex
Compania de Minas Buenaventura S.A.A.'s Tambomayo in Peru; district of Tapay, province of Caylloma, Arequipa region has a Pre-Feasibility Study (PFS) outlining an after-tax NPV of $41M and initial capital of $17M. The mine plan runs 3 years at about 1500 per year.
Compania de Minas Buenaventura S.A.A.'s Tambomayo has reported Pre-Feasibility Study (PFS) results for the gold & silver project in Peru; district of Tapay, province of Caylloma, Arequipa region. The study headlines an after-tax net present value of $41M at a 6.04% discount rate. It reflects Compania de Minas Buenaventura S.A.A.'s (BVN) latest disclosed economics for the asset.
Economics. The after-tax NPV is $41M using a 6.04% discount rate. Initial capital expenditure is estimated at $17M. Economics are based on Resource NSR: US$27.5/oz silver, US$1,760/oz gold, US$2,515/t lead, US$2,624/t zinc. Reserve key params: gold 1,600 US$/oz, silver 25.00 US$/oz, lead 2,286 US$/t, zinc 2,385 US$/t.
Production and mine plan. The project envisions an underground operation. Life of mine is 3 years. Average annual production is approximately 1500. Average head grade is 6.16 g/t Au, 5.37 oz/t Ag, 1.4% Pb, 2.1% Zn.
Resources and ownership. The company holds a 100% interest in the project.
These figures are extracted from Compania de Minas Buenaventura S.A.A.'s technical disclosures and reflect the most recent PFS on file. Compare this project against other developers and producers in our project economics database, and always verify the numbers against the original technical report before making any investment decision.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Proven | 487 kt | 3.39 g/t Au, 215.53 g/t Ag, 0.98% Pb, 1.48% Zn | — |
| Probable | 901 kt | 2.81 g/t Au, 133.17 g/t Ag, 0.92% Pb, 1.38% Zn | — |
| Proven & Probable | 1,388 kt | 3.01 g/t Au, 162.09 g/t Ag, 0.94% Pb, 1.41% Zn | — |
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured | 254 kt | 3.88 g/t Au, 5.04 oz/t Ag, 1.1% Pb, 1.76% Zn, NSR 264.24 US$/t, 5.81 g/t AuEq | — |
| Indicated | 304 kt | 2 g/t Au, 4.38 oz/t Ag, 0.9% Pb, 1.46% Zn, NSR 167.39 US$/t, 3.68 g/t AuEq | — |
| Measured & Indicated | 557 kt | 2.86 g/t Au, 4.68 oz/t Ag, 0.99% Pb, 1.6% Zn, NSR 211.44 US$/t, 4.65 g/t AuEq | — |
| Inferred | 120 kt | 1.73 g/t Au, 8.4 oz/t Ag, 0.79% Pb, 1.08% Zn, NSR 234.26 US$/t, 5.15 g/t AuEq | — |
Our Analysis
- NPV after-tax
- $41M
higher than 5% of 403 projects we track
- Initial capex
- $17M
41% of NPV
costlier than 8% of 397 projects we track
- Mine life
- 3yrs
- Study price assumption
- Resource NSR: US$27.5/oz silver, US$1,760/oz gold, US$2,515/t lead, US$2,624/t zinc. Reserve key params: gold 1,600 US$/oz, silver 25.00 US$/oz, lead 2,286 US$/t, zinc 2,385 US$/t
- Spot gold today
- $4,107.00/oz
A 3-year mine life with a $41M after-tax NPV and $17M initial capex places this squarely in the lower tail of our tracked universe: it ranks higher than just 5% of 403 projects. That is not a criticism in isolation, but it defines the investment case. This is a small, short-duration asset, and its capital-light profile (capex at 41% of NPV, lower than 92% of 397 tracked projects) is the genuine attraction. The financing hurdle is trivial relative to the company's scale, and this is one of 21 projects in a diversified portfolio, so the equity story is about optionality and cash flow, not a single binary bet.
The jurisdiction is the lens through which the numbers should be read. Peru is a mining-friendly jurisdiction generally, but the Arequipa region and the high-Andean district of Tapay carry the usual permitting and community-relations frictions that a PFS cannot fully de-risk. The study is at pre-feasibility, a plus or minus 25% band, which is adequate for a $17M build but not a final sanction document. The gold price assumption of $1,760/oz sits far below the current spot of $4,107/oz, which is a meaningful upside cushion if prices hold, though the study's silver, lead and zinc assumptions are more conservative and less decisive for a gold-silver project.
The two-sided read on the NPV-to-capital gap is straightforward: the market may be ignoring this asset because it is small and short-lived, or it may be correctly skeptical that a 3-year mine in a permitting-sensitive district delivers on schedule. The decisive question is not whether the economics work at current gold prices, they clearly do, but whether the company can convert this PFS into production within the mine life without the delays that erode a short-duration project's entire 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.