The Altar Copper Gold Project PEA: $2.00B NPV, 20.5% IRR
Aldebaran Resources Inc.'s The Altar Copper Gold Project in San Juan, Argentina has a Preliminary Economic Assessment (PEA) outlining a pre-tax NPV of $2.00B and a pre-tax IRR of 20.5%. The mine plan runs 45 years at about 121445 CuEq tonnes p.a. (Years 1-20) per year.
Aldebaran Resources Inc.'s The Altar Copper Gold Project has reported Preliminary Economic Assessment (PEA) results for the copper, gold, silver, molybdenum project in San Juan, Argentina. The study headlines a pre-tax net present value of $2.00B at a 8% discount rate. It reflects Aldebaran Resources Inc.'s (ALDE.V) latest disclosed economics for the asset.
Economics. The pre-tax NPV is $2.00B using a 8% discount rate. Pre-tax IRR is 20.5%. The study models a payback period of 4 years. All-in sustaining costs are pegged at 2.25 USD/lb Cu. Economics are based on Base case: $4.35 Cu/lb, $2,500 Au/oz, $27 Ag/oz. Spot: $6.15 Cu/lb, $4,500 Au/oz.
Production and mine plan. The project envisions an open-pit & underground operation. Life of mine is 45 years. Average annual production is approximately 121445 CuEq tonnes p.a. (Years 1-20).
Resources and ownership. The company holds a 80% interest in the project.
These figures are extracted from Aldebaran Resources Inc.'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.
Reserves & Resources
| Category | Tonnage | Grade | Contained |
|---|---|---|---|
| Measured & Indicated | — | 0.42% Cu, 0.07 g/t Au, 1.22 g/t Ag | 22.01 Billion lbs Cu, 5.08 Moz Au, 93.76 Moz Ag |
| Inferred | — | 0.37% Cu, 0.04 g/t Au, 1.25 g/t Ag | 9.83 Billion lbs Cu, 1.71 Moz Au, 49.04 Moz Ag |
Our Analysis
- IRR pre-tax
- 20.5%
higher than 20% of 317 projects we track
- NPV pre-tax
- $2.00B
higher than 85% of 414 projects we track
- Payback
- 4yrs
slower than 82% of 252 projects we track
- Mine life
- 45yrs
- Discount rate
- 8%
- Study price assumption
- Base case: $4.35 Cu/lb, $2,500 Au/oz, $27 Ag/oz. Spot: $6.15 Cu/lb, $4,500 Au/oz
The valuation gap here is the story, and it cuts both ways. At roughly 5.2x the company's US$388M market cap, the pre-tax NPV of $2.00B implies either a market that has not yet priced in the asset, or one that doubts a small-cap can finance and permit what it is proposing to build. The company is not a single-asset junior; it has a portfolio of three projects we track, which lends some credibility to its ability to manage this scale. But the gap remains wide enough that the market's skepticism on execution, not the resource itself, is the real variable.
The returns are respectable but hardly headline-grabbing. A 20.5% pre-tax IRR ranks in the bottom quartile of the 317 projects we track, and while it clears the ~15% after-tax hurdle developers typically need for project finance, it does so with less margin than peers. The 4-year payback is moderate, ranking lower than 18% of comparable projects. The study is a PEA, scoping-level, with a capital estimate that carries a wide band; at this stage, the NPV is a directional signal, not a commitment. The 45-year mine life in San Juan, Argentina, adds jurisdictional risk that a feasibility study would need to address more rigorously.
The base case assumes $4.35 Cu/lb and $2,500 Au/oz, which are conservative relative to the study's own sensitivity range, but the returns are what they are at those prices. The single question that decides whether this works: can a US$388M company finance a build whose NPV is five times its own equity value, and can it secure the permits to see it through? If yes, the gap closes. If not, the market's caution is justified.
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.