Tiros Project PEA: $715M NPV, 44.2% IRR
Resouro Strategic Metals Inc.'s Tiros Project in Minas Gerais, Brazil has a Preliminary Economic Assessment (PEA) outlining an after-tax NPV of $715M, an after-tax IRR of 44.2%, and initial capital of $191M. The mine plan runs 20 years at about 500000 tpa processing facility per year.
Resouro Strategic Metals Inc.'s Tiros Project has reported Preliminary Economic Assessment (PEA) results for the titanium & rare earths project in Minas Gerais, Brazil. The study headlines an after-tax net present value of $715M at a 8% discount rate. It reflects Resouro Strategic Metals Inc.'s (RSM.V) latest disclosed economics for the asset.
Economics. The after-tax NPV is $715M using a 8% discount rate. After-tax IRR is 44.2%. Initial capital expenditure is estimated at $191M, with life-of-mine sustaining capital of $60M. The study models a payback period of 1.9 years. Economics are based on TREO basket price US$57.43/kg before payability (REO-equivalent).
Production and mine plan. The project envisions an open-pit operation. Life of mine is 20 years. Average annual production is approximately 500000 tpa processing facility. Average head grade is Average ROM grades of 10,852 ppm TREO and 26.3% TiO2.
Resources and ownership. The company holds a 90% interest in the project.
These figures are extracted from Resouro Strategic Metals 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 | 367 Mt | 12% TiO2, 4,100 ppm TREO, 1,100 ppm MREO | — |
| Indicated | 1,000 Mt | 12% TiO2, 4,000 ppm TREO, 1,110 ppm MREO | — |
| Measured & Indicated | 1,400 Mt | 12% TiO2, 4,000 ppm TREO, 1,100 ppm MREO | — |
| Inferred | 500 Mt | 12% TiO2, 3,700 ppm TREO, 1,000 ppm MREO | — |
| Measured | 30 Mt | 24% TiO2, 9,300 ppm TREO, 2,500 ppm MREO | — |
| Indicated | 74 Mt | 23% TiO2, 8,900 ppm TREO, 2,300 ppm MREO | — |
| Measured & Indicated | 103 Mt | 23% TiO2, 9,100 ppm TREO, 2,400 ppm MREO | — |
| Inferred | 33 Mt | 22% TiO2, 8,300 ppm TREO, 2,200 ppm MREO | — |
| Measured | 340 Mt | 11% TiO2, 3,700 ppm TREO, 1,000 ppm MREO | — |
| Indicated | 930 Mt | 11% TiO2, 3,600 ppm TREO, 1,000 ppm MREO | — |
| Measured & Indicated | 1,300 Mt | 11% TiO2, 3,600 ppm TREO, 1,000 ppm MREO | — |
| Inferred | 470 Mt | 11% TiO2, 3,400 ppm TREO, 920 ppm MREO | — |
Our Analysis
- IRR after-tax
- 44.2%
higher than 73% of 323 projects we track
- NPV after-tax
- $715M
higher than 58% of 421 projects we track
- Initial capex
- $191M
27% of NPV
costlier than 43% of 411 projects we track
- Payback
- 1.9yrs
slower than 27% of 258 projects we track
- Mine life
- 20yrs
- Discount rate
- 8%
- Study price assumption
- TREO basket price US$57.43/kg before payability (REO-equivalent)
The cheque is the story. A US$191M initial build on a US$24M market cap means this project cannot be financed from the balance sheet, and the 8.1x capex-to-market-cap ratio is the sharpest measure of that gap. The only realistic paths are substantial equity dilution, a strategic partner with deep pockets, or project finance that a nano-cap with a single tracked asset would struggle to secure on its own. Existing holders should read the 30.3x NPV-to-market-cap gap two ways: either the market is ignoring a genuinely large asset, or it is pricing in the very real difficulty of funding it. The capital-light nature of the build, at 27% of NPV, helps the thesis, but it does not solve the funding equation.
The economics are strong enough to justify the effort. A 44.2% after-tax IRR clears the 20% hurdle a higher-risk junior with no portfolio diversification typically needs, and it ranks in the upper half of the projects we track. The 1.9-year payback is fast, and the US$715M NPV sits above the median of our tracked universe. But this is a scoping-level PEA, not a feasibility study, and its capital estimate carries a wide band. The 20-year mine life in Minas Gerais, Brazil, is a familiar mining jurisdiction, but the numbers should be read with the caution that a preliminary study demands, particularly on the cost side.
The TREO basket price of US$57.43/kg is the study's own assumption, and with no live reference available, it stands as a sensitivity rather than a benchmark. The single question that decides this project is not whether the orebody works, it is who writes the US$191M cheque and what they demand in return. Until that is answered, the NPV is a promise, not a position.
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.