Toquepala Feasibility Study: $374M NPV Over a 41.2-Year Mine Life
Southern Copper Corporation's Toquepala in Tacna Region, Peru has a Feasibility Study outlining an after-tax NPV of $374M. The proposed mine plan runs 41.2 years.
Southern Copper Corporation's Toquepala has reported Feasibility Study results for the copper project in Tacna Region, Peru. The study headlines an after-tax net present value of $374M at a 10% discount rate. It reflects Southern Copper Corporation's (SCCO) latest disclosed economics for the asset.
Economics. The after-tax NPV is $374M using a 10% discount rate. Economics are based on Long-term copper price of $3.30/lb and molybdenum of $10.00/lb over the life of mine for mineral reserves. Mineral resource estimate prices of $3.80/lb copper and $11.50/lb molybdenum (reserve price increased by 15%)..
Production and mine plan. The project envisions an open-pit operation. Life of mine is 41.2 years. Average head grade is Copper concentrate grade 26.74%; molybdenum concentrate grade 56.48%. Metallurgical recovery averages 88.5%.
Resources and ownership. Royalties and streams: NSR royalty (modified mining royalty) (1%).
These figures are extracted from Southern Copper Corporation's technical disclosures and reflect the most recent Feasibility Study 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
- NPV after-tax
- $374M
higher than 29% of 31 projects we track
- Mine life
- 41.2yrs
- Study price assumption
- Long-term copper price of $3.30/lb and molybdenum of $10.00/lb over the life of mine for mineral reserves. Mineral resource estimate prices of $3.80/lb copper and $11.50/lb molybdenum (reserve price increased by 15%).
- Spot copper today
- $6.52/lb
The copper project in Peru’s Tacna Region sits in an unremarkable but instructive position: its after-tax NPV of $374M ranks higher than only 29% of the 31 copper projects we track. That is not a dismissal, it is a calibration. Investors should read it as a mid-pack asset in a strong commodity environment, one whose value is real but whose upside is not exceptional within our coverage. The rank matters less than what it implies about the financing and operating profile: this is a project that should be financeable on its own merits, but it will not command a premium valuation from the market.
The numbers carry unusual weight here because the study is at feasibility level, the build-ready estimate with a typical plus or minus 15% band. That is the confidence an investor wants before committing capital, and it distinguishes this from the scoping-level PEAs that dominate much of the sector. The 41.2-year mine life is a genuine differentiator, not a headline figure but a structural one: it spreads capital recovery and operating risk over a very long horizon, which suits a large-cap owner with a diversified portfolio. The company, at a market cap of roughly US$145.05B, can absorb this build without strain, and the NPV sits well below that equity value, so dilution risk is minimal.
The price assumptions deserve scrutiny. The study uses a long-term copper price of $3.30/lb for reserves, against a current spot of $6.52/lb. That conservative gap is a cushion, not a red flag, but it also means the NPV is deliberately understated relative to today's market. The single question that decides whether this works is whether the feasibility-level cost and recovery assumptions hold over a 41-year operating life, because the project's rank and returns are adequate, not overwhelming, and only flawless execution turns adequate into compelling.
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.