Tiros Rare Earths and Titanium Project PEA: $715M NPV, 44.2% IRR
Resouro Strategic Metals Inc.'s Tiros Rare Earths and Titanium 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 $160M. The proposed mine plan runs 20 years.
Resouro Strategic Metals Inc.'s Tiros Rare Earths and Titanium Project has reported Preliminary Economic Assessment (PEA) results for the rare earths & titanium 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 $160M, with life-of-mine sustaining capital of $60M. The study models a payback period of 1.9 years. All-in sustaining costs are pegged at 219 US$/t ROM. Economics are based on TREO basket price US$57.43/kg (before payability); TiO2 coarse concentrate US$900/t and fine US$650/t; MREC payability of 70%, equivalent to US$40.20/kg REO-equivalent.
Production and mine plan. The project envisions an open-pit operation. Life of mine is 20 years. Average head grade is 26.3% TiO2, 10,852 ppm TREO. Metallurgical recovery averages 80%. The open-pit strip ratio is 2.7:1.
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, 27% MREO/TREO | — |
| Indicated | 1,000 Mt | 12% TiO2, 4,000 ppm TREO, 1,100 ppm MREO, 28% MREO/TREO | — |
| Measured + Indicated | 1,400 Mt | 12% TiO2, 4,000 ppm TREO, 1,100 ppm MREO, 28% MREO/TREO | — |
| Inferred | 500 Mt | 12% TiO2, 3,700 ppm TREO, 1,000 ppm MREO, 27% MREO/TREO | — |
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
- $160M
22% of NPV
costlier than 39% 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); TiO2 coarse concentrate US$900/t and fine US$650/t; MREC payability of 70%, equivalent to US$40.20/kg REO-equivalent
The financing question is the project. A US$24M nano-cap with a single tracked asset is proposing a US$160M build, roughly 6.8x its entire market cap. No bank lends into that gap on a PEA-stage study, and no strategic buyer pays a premium for scoping-level certainty. The realistic cheque-writers are equity investors funding dilution, or a partner taking a large stake at a discount. Either path meaningfully dilutes existing holders before first revenue, and the 30.3x NPV-to-market-cap spread is the market's two-sided verdict: either the asset is dramatically underpriced, or the market is discounting the financing chasm, the PEA's plus-or-minus-50% capital band, and the execution risk of a junior building in rare earths.
The economics justify the ambition, but only as a supporting argument. The 44.2% after-tax IRR clears the 20%+ hurdle a higher-risk junior needs to attract project finance, and ranks above 73% of tracked peers. The 1.9-year payback is fast, and the US$715M NPV at an 8% discount rate ranks above 58% of tracked projects. Capital intensity is genuinely low at 22% of NPV, and the study's TREO basket assumption of US$57.43/kg with 70% payability is the key sensitivity: if that price softens, the payback and IRR compress quickly. Minas Gerais is a credible mining jurisdiction, but Brazil adds permitting and fiscal layers that a nano-cap must navigate without a balance sheet buffer.
The single question that decides this: can management secure funding without surrendering the upside that the 30.3x NPV gap implies? If they dilute heavily to build, existing holders own a fraction of a good project. If they cannot fund at all, the NPV is theoretical. The 20-year mine life and the project's rank among peers matter only after that funding answer is known.
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.